In this article, we discuss the 10 best dental stocks to buy now under hedge funds. If you are in a hurry, you can jump and click to read the 5 best dental stocks to buy now.
Oral health is one of the key indicators for general health and well-being. However, it is clear that the sector has been one of the most neglected in the health sector today. According to the International Cancer Research Agency, cancers of the lip and oral cavity are among the 15 most common cancers worldwide, with almost 180,000 deaths each year. The Global Burden of Disease Study 2017 estimated that oral diseases affect 3.5 billion people worldwide.
The numbers are not surprising. First, most are afraid to go to the dentist. In an article published by MoneyWeek, according to a survey, up to three quarters of the population experience anxiety before going to the dentist’s chair. Despite the fear, dental care is something we simply cannot refuse. In a study by Statista in 2019, the global oral care market was worth about $ 44.5 billion. According to a NASDAQ report, in the past six years, the industry has grown at a compound annual growth rate (CAGR) of 1.4%.
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The COVID-19 pandemic has left its mark on the entire health care system in the United States, including the dental industry. Many dentists started thinking about selling their clinics and suspending their practices. According to the American Dental Association, in 2020, American dental spending fell 38 percent. In a survey conducted in August, 51.3% of respondents were open, but had a lower than normal volume of patients. However, the United States Department of Labor Statistics has reported that demand for dental services will increase as the population ages and research continues to link oral health to general health. This will result in a projection for overall dentist employment growth of 3 percent from 2019 to 2029, almost as fast as the average for all occupations.
The Biden administration aims to expand the Affordable Care Act (ACA) to improve access to healthcare for those without insurance. In 2016, first introduced by President Obama, the policy caused the number of Americans without health insurance to drop from 44 million to 27 million.
The American Dental Association (ADA) plans to work with the Biden Administration to address the country’s oral health issues. Mike Graham, the senior vice president of government and public relations at the ADA mentioned,
“The ADA is the voice of thousands of dentists who care deeply about their patients and their profession,” Graham told DTI. “Dentists offer bipartisan support to elected officials and candidates who share the same goal: to promote oral health for Americans. We congratulate everyone who was elected this month and look forward to working with the new elected officials, in Congress and the White House, to help dentists, patients and the profession make a difference in Washington, DC, and improve our country’s oral health, “
Our internal research reveals that, using hedge fund sentiment data, we can identify a small group of stocks that can outperform the S&P 500 index by an average of two digits annually. For example, the stock options portfolio for our monthly newsletter has outperformed the market by more than 78 percentage points since March 2017 (see details here). Some of the portfolio options for our monthly newsletter have also been shared publicly by us. In October, we posted this real estate stock idea and since then, it has grown by more than 50%.
Based on our hedge fund sentiment data, we present you the 10 best dental stocks to buy now, out of more than 800 hedge funds monitored by Insider Monkey:
10. Procter & Gamble (NYSE: PG)
No. of HFs: 75
Total value of HF holdings: $ 10.09 billion
We classify the diversified consumer goods company, PG, as the 10th best dental stock to buy now. Although it sells toothpaste, toothbrushes, oral hygiene vitamins and mouthwashes, the stock is not pure dental stock. That is why we classify PG as the 10th share to buy now. Otherwise, we would not have included it on our list. PG was also mentioned as one of Dow’s Top 10 Shares to Buy Now and as one of Blue Chip’s Top 15 Shares to Buy Now. P&G is considered one of the oldest companies in the world. It is a global consumer goods company that continues to innovate and develop new products, despite being over 180 years old.
Currently, P&G is considered the largest consumer goods company in the world. They registered 5 billion consumers in 180 countries around the globe. The company is known for its 65 billion dollar individual brands that are placed in 10 product categories, such as fabric care, home care, baby care, female care, family care, hygiene, oral care, personal health care, hair care, as well as skin and personal care. In Distillate Capital’s recent letter to investors in the second quarter of 2020, they mentioned some of their comments on the shares.
“P&G is an example of an action in which free cash yield really improved over the year in the estimates for the next twelve months and in our standardized methodology.”
9. Aesthetic Medical International Holdings Group (NASDAQ: AIH)
No. of HFs: 1
Total value of participation in HF: $ 181 thousand
AAIH ranks 9th on our list of the best dental stocks to buy now. IH offers aesthetic services, including surgery and non-surgical treatments. The company recently announced the termination of the agreement to acquire a 51% stake in Guangdong Hanfei Investment Management Co., Limited. The decision was greatly affected by the impact of the COVID-19 pandemic. Dr. Zhou Pengwu, the Company’s President and CEO said:
“We sincerely regret that the current market and the economic condition caused by the pandemic COVID-19 do not set the right scenario for the acquisition of Hanfei, and we determined that it is in our shareholders’ interest to cancel the transaction this time. Our overall strategy, however, remains firm and we will actively implement our acquisition strategy. Going forward, we will continue to investigate and look for attractive opportunities in strategic investments and acquisitions to meet the growing demand for aesthetic medical services across the country and generate greater value for shareholders ”.
8. Biolase, Inc. (NASDAQ: BIOL)
No. of HFs: 4
Total value of participation in HF: $ 159 thousand
BIOL ranks 8th on our list of the best dental stocks to buy now. The main holder of this stock’s hedge fund is Sabby Capital, owned by Hal Mintz, which had $ 92,000 invested in the stock at the end of September. BIOL is the world’s leading innovator in dental lasers. They recently announced an agreement with the DSO Dental Care Alliance to expand laser adoption in dental offices in the United States. Todd Norbe, President and CEO of BIOLASE is confident that he will properly meet the DCA,
“Our industry-leading dental lasers allow us to properly serve a customer like DCA, and by reducing aerosols in dental practices, we believe we can improve the safety of their patients and employees. The demand for EpicX and Epic Hygiene lasers is increasing and This year alone, we have sold more than 100 systems to DCA. We are excited to partner with DCA as they continue to launch our Epic lasers at their offices in the United States. “
7. 3D Systems Corporation (NYSE: DDD)
No. of HFs: 15
Total value of HF holdings: $ 33 million
DDD ranks 7º in our list of the best dental stocks to buy now. The main holder of the hedge fund for this stock is DE Shaw, DE Shaw, who had $ 11 million invested in the stock at the end of September. An insider bought 17,000 shares for about $ 5 in September 2020. The shares have fallen 620% since then. The company provides 3D printing and printers for plastics and metals. During the third quarter of 2020, the company reported that a product business generated $ 77.2 million in revenue. Here’s what we said recently about DDD:
“The company has been in the 3D business for more than 3 decades. DDD’s shares have had many ups and downs over the years. At one point during the end of 2013, its shares were trading around $ 100. not long ago, the stock price plummeted to a low of around $ 5. Although the shares traded virtually flat over the past year, it performed exceptionally well in 2021.
3D Systems’ stock price soared more than 100 percent last Thursday after the company announced an impressive revenue forecast for the fourth quarter. It expects to record revenue in the range of $ 170 million to $ 176 million in the quarter, well above the analysts’ average estimate of $ 140 million.
In addition, the company also reported last week that it has completed the sale of its non-core software businesses, including Cimatron and GibbsCAM, for total revenues of approx. $ 64.2 million. Speaking about development, CEO Jeffrey Graves said in a statement: “These divestments have strengthened our balance sheet, allowing us to pay our debt and close the ATM Program well ahead of what was originally planned.”
3D shares continued to rise this week, with stocks rising more than 17 percent on Monday, and shooting 36.21 percent on Thursday. Overall, the value of DDD’s shares has increased by more than 200% so far this year, with investors welcoming the promising revenue forecast. Many believe that the company would finally be able to end its losing streak and make a profit very soon. “
6. Patterson Companies (NASDAQ: PDCO)
No. of HFs: 18
Total value of HF holdings: $ 82 million
Patterson Companies is known for its veterinary and dental products. Based on a NASDAQ report, on January 29, 2021, a cash dividend payment of $ 0.26 per share is scheduled to be paid. This will mark the 16º quarter in which PDCO paid the same dividend. During the third quarter of 2020, the company reported consolidated net sales of approximately $ 1.46 billion. At the end of September, a total of 18 of the hedge funds monitored by Insider Monkey were purchased with these shares, a variation of -18% compared to the second quarter of 2020.
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Disclosure: None. 10 Best Dental Stocks To Buy Now is originally published in Insider Monkey.