Reasons to Add DENTSPLY SIRONA Stock to Your Portfolio Now

Core Viewpoint - DENTSPLY SIRONA (XRAY) is positioned for growth through its new digital-implant workflow and ongoing research and development focus, although it faces forex headwinds and demand softness in Europe [1][3]. Company Overview - DENTSPLY SIRONA has a market capitalization of $3.23 billion and is a global leader in dental consumables, laboratory products, specialty products, and medical devices, with an expected earnings improvement of 7.4% over the next five years [2]. Growth Factors - The introduction of the Azento solution is transforming digital implant workflows, enhancing planning, purchasing, and delivery for single-tooth replacements, now available in Canada and Europe, positioning the company in the $20 billion global tooth-replacement market [3][6]. - Demand for 3D imaging and treatment centers is increasing due to technological upgrades and supply-chain recovery, while the company's expansion in clear aligners further enhances its digital dentistry ecosystem [3]. - DENTSPLY SIRONA's growth strategy is heavily reliant on product innovation, supported by increased R&D spending, which reached $36 million in Q1 2025, aimed at delivering sustainable innovation [4][7]. Financial Performance - In Q1 2025, DENTSPLY SIRONA reported an adjusted operating profit of $72 million, a 46.9% increase from the previous year, with an adjusted operating margin expanding by 305 basis points to 8.2% [8]. - The Zacks Consensus Estimate for 2025 revenues is $3.65 billion, reflecting a 3.7% decrease from 2024, while the consensus for adjusted earnings per share is $1.90, indicating a 13.8% year-over-year improvement [10]. Challenges - There is a noted softness in demand for CAD/CAM products in Europe, particularly in Germany, which is impacting sales and is expected to continue affecting the company in the upcoming quarters [9].