Group 1 - Upslope Capital Management aims to provide attractive, equity-like returns while reducing market risk and maintaining low correlation with traditional equity strategies [1] - The Fund delivered a return of +2.0% (net) in Q4 2025, outperforming the S&P Midcap 400 ETF and HFRX Equity Hedge Index, which returned +1.6% [1] - For the full year 2025, the Fund achieved a return of +14.8%, significantly higher than the +7.2% and +10.1% returns of the respective indexes [1] Group 2 - Henry Schein, Inc. (NASDAQ:HSIC) has been added to Upslope's portfolio, with a recent stock price of $79.98 per share as of January 16, 2026 [2] - The one-month return for Henry Schein, Inc. was 3.09%, and its shares increased by 9.23% over the last 52 weeks [2] - Henry Schein, Inc. is the leading distributor of dental products in the U.S. and holds a significant market share in various countries, with 52% of Dental sales from the U.S. [3]

Core Insights - Zuckerman Investment Group has increased its stake in Henry Schein by purchasing an additional 72,040 shares, raising its total position to 281,339 shares valued at $18.67 million as of September 30 [2][3] - The purchase reflects a strategic move by the fund, which focuses on capital-efficient, cash-generating businesses, and aligns with Henry Schein's improving earnings profile and aggressive stock buybacks [10][12] Company Overview - Henry Schein, Inc. is a leading global distributor of healthcare products and services, primarily in the dental and medical markets, leveraging a vast distribution network and technology-enabled services [6][9] - The company reported a trailing twelve months (TTM) revenue of $12.94 billion and a net income of $391 million [4] Financial Performance - In the third quarter, Henry Schein's revenue increased by 5% to $3.3 billion, with adjusted EBITDA rising to $295 million and non-GAAP EPS increasing by 13% year over year to $1.38 [10] - Management has raised its full-year non-GAAP EPS guidance to a range of $4.88 to $4.96 and lifted its sales growth outlook to 3% to 4% [10] Market Position - As of the latest trading, Henry Schein's shares were priced at $76.33, reflecting an 8% increase over the past year, although this performance lags behind the S&P 500, which has risen by approximately 15.5% in the same period [3] - The company's stock buyback program included $229 million in repurchases during the quarter, with an additional $980 million authorized for future buybacks [12] Growth Initiatives - Henry Schein's global technology sales grew nearly 10%, and specialty products increased close to 6%, with management expecting over $200 million in operating income improvement from value creation initiatives in the coming years [11]

Core Insights - Cardinal Health, Inc. is a significant player in the healthcare services and products sector, with a market capitalization of $47.04 billion, focusing on the distribution of pharmaceuticals and medical supplies [1] Stock Performance - Cardinal Health's shares reached a 52-week high of $214.93 on November 26 but have since declined by 7.9% from that peak [2] - The stock has experienced a 31.2% increase over the past three months, outperforming the Nasdaq Composite index, which gained 7.8% during the same period [2] - Over the past 52 weeks, Cardinal Health's stock has gained 62.9%, and 28.9% over the past six months, while the Nasdaq Composite gained 19.5% and 20.3%, respectively [3] Financial Performance - For the first quarter of fiscal 2026, Cardinal Health reported revenues of $64.01 billion, a 22% year-over-year increase, surpassing Wall Street's expectation of $59.05 billion [4] - The company's non-GAAP EPS rose by 36% year-over-year to $2.55, exceeding the analysts' estimate of $2.21 [4] - Cardinal Health raised its fiscal 2026 non-GAAP EPS outlook from a range of $9.30-$9.50 to $9.65-$9.85, indicating projected growth of 17%-20% [5] Strategic Developments - The stock rose 15.4% intraday on October 30 following the strong quarterly results and updated outlook [5] - Cardinal Health completed the acquisition of urology MSO Solaris Health, adding over 750 providers to its multi-specialty MSO platform [5] Competitive Positioning - Compared to Cencora, Inc., which gained 40.2% over the past 52 weeks and 18.8% over the past six months, Cardinal Health has demonstrated superior performance [6]

Core Thesis - Henry Schein, Inc. (HSIC) is viewed positively due to its potential growth catalysts, including the appointment of a new CEO, private-label expansion, cost optimization, and AI-driven growth opportunities in its dental software business [2][4][5] Financial Metrics - As of December 1st, HSIC's share price was $73.11, with trailing and forward P/E ratios of 23.06 and 13.95 respectively [1] - The stock trades at approximately 13 times EPS, indicating a depressed valuation due to stagnant end-market growth and disappointing organic growth and margins [2] Growth Potential - The company is expected to achieve consensus EPS of over $7 within the next two to three years, suggesting a potential stock valuation of under 10 times earnings if execution aligns with expectations [3] - Ongoing share repurchase programs and strategic initiatives are seen as levers to drive future earnings growth [3][4] Market Position - HSIC holds a dominant market position as the largest dental distributor in the U.S., supported by a robust distribution network [2][4] - The company is currently undervalued relative to its earnings trajectory and the strategic opportunities that may arise under new leadership, presenting a favorable risk/reward profile for investors [4]

Core Insights - Cencora, Inc. is a leading global pharmaceutical-services company with a market cap of $58.7 billion, providing comprehensive solutions in the healthcare supply chain [1][2] Company Overview - Cencora operates in the healthcare value chain, offering services for branded, generic, specialty, and over-the-counter medicines [1] - The company is classified as a large-cap stock due to its market cap exceeding $10 billion, highlighting its significant influence in the medical distribution industry [2] - Cencora's competitive advantage stems from its diversified portfolio, scale-driven bargaining power, and strong brand equity [2] Stock Performance - Cencora's stock has experienced a 7.1% decline from its 52-week high of $377.54, reached on November 25 [3] - Over the past three months, the stock has gained 18.9%, outperforming the Health Care Select Sector SPDR Fund's 12.2% gain [3] - Year-to-date, shares have risen 56.1%, and over the past 52 weeks, they have climbed 40.3%, significantly outperforming the XLV's YTD gains of 12.2% [4] Recent Financial Results - Following the release of strong Q3 results on November 5, Cencora's shares increased by 2.8%, indicating investor confidence [5] - Q3 revenue rose 5.9% year-over-year to $83.7 billion, exceeding Wall Street expectations by 69 basis points [5] - Adjusted EPS for the quarter jumped 15% to $3.84, surpassing consensus estimates by 1.3%, reinforcing the company's growth momentum [5]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing price trends and earnings outlook [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7] - Investors are encouraged to consider stocks with a Zacks Rank of 1 or 2 alongside Style Scores of A or B for optimal returns [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: Henry Schein Inc. - Henry Schein Inc. is a prominent distributor of healthcare products and services, operating in 33 countries [11] - Currently rated 3 (Hold) by Zacks, Henry Schein has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 8.5% over the past month [11][12] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate rising by $0.06 to $4.89 per share for fiscal 2025 [12]

Core Insights - Henry Schein, Inc. (HSIC) reported third-quarter 2025 adjusted earnings per share (EPS) of $1.38, reflecting a 13.1% increase year over year and surpassing the Zacks Consensus Estimate by 8.7% [1][8] - The company achieved net sales of $3.34 billion, a 5.4% year-over-year increase, also exceeding the Zacks Consensus Estimate by 2% [2][8] - HSIC raised its full-year 2025 adjusted EPS forecast to a range of $4.88 to $4.96, up from the previous range of $4.80 to $4.94, indicating confidence in future performance [12][14] Financial Performance - Adjusted operating profit for the quarter was $266 million, down 1.1% year over year, with an adjusted operating margin of 8%, contracting by 51 basis points [9] - Gross profit totaled $1.03 billion, a 3.3% increase year over year, but gross margin contracted by 56 basis points to 30.7% due to a 6% rise in the cost of sales [7][9] Revenue Breakdown - Global Distribution and Value-Added Services segment sales rose 4.8% year over year to $2.84 billion, exceeding the forecast of $2.77 billion [3] - Global Dental Distribution merchandise sales increased by 2.9% in constant currencies, while equipment sales grew by 3.4% [4] - Global Medical Distribution sales jumped 4.6% in constant currencies, driven by strong growth in medical products and pharmaceuticals [4] Segment Performance - Global Specialty Products segment sales reached $369 million, up 5.9% on a reported basis, reflecting strong growth in dental implants and endodontics [5] - Global Technology segment sales totaled $173 million, a 9.7% increase on a reported basis, driven by cloud-based software adoption and new revenue cycle management solutions [6] Strategic Initiatives - The company successfully executed its BOLD+1 strategic plan, focusing on operational efficiency, enhancing customer experience, and expanding its digital solutions [14] - Henry Schein announced value creation initiatives expected to deliver over $200 million in operating income improvement over the next few years [13] Liquidity and Share Repurchase - At the end of Q3 2025, Henry Schein had cash and cash equivalents of $136 million, down from $145 million at the end of Q2 [10] - The company repurchased approximately 3.3 million shares at an average price of $68.62 per share, totaling around $229 million, with $980 million authorized for future repurchases [11]

Financial Data and Key Metrics Changes - Global sales for the third quarter were $3.3 billion, reflecting a sales growth of 5.2% compared to the third quarter of 2024, with constant currency sales growth of 4.0% [17][22] - GAAP operating margin for the third quarter was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin improved to 7.83%, an increase of 19 basis points [18][19] - Third quarter GAAP net income was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [20] - Non-GAAP net income for the third quarter was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23] - Global technology group sales experienced a total growth of 9.7%, driven by practice management software and revenue cycle management solutions [23][14] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, driven by strong demand for medical products and pharmaceuticals, particularly in the dialysis business [10][22] - International dental merchandise sales grew by 6.0%, with notable growth in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [13] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8][25] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected to follow the successful launch in the U.K. and Ireland [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives targeting over $200 million in operating income improvements [7][24] - The cyber incident is now behind the company, and management is optimistic about sales momentum and market share gains [39][32] - The overall market is described as stable, with some inflationary pressures, but the company is gaining market share in key segments [51][49] Other Important Information - The company recorded restructuring expenses of $34 million during the third quarter, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The effective tax rate for the third quarter on a non-GAAP basis was 22.9%, reflecting a decrease from the prior year [20] Q&A Session Summary Question: Future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement is a multi-year plan, with expectations for some operating improvements in 2026 [40][41] Question: Clarification on EPS guidance and market conditions - The midpoint in 2025 EPS guidance increased by $0.05, reflecting both the remeasurement gain and sales momentum [44][47] Question: Specialty products operating profit and margin dynamics - Specialty products' operating profit was impacted by a strong prior-year comparison and a shift in sales mix towards lower-margin value implants [66] Question: Growth trajectory for specialty products - Continued growth in premium implants and endodontic sales is necessary for EBIT dollar growth in the specialty business [71] Question: Market share gains and competitive landscape - Management noted confidence in gaining market share, particularly in the dental and medical segments, despite a stable market environment [49][85]

Financial Data and Key Metrics Changes - Global sales for the third quarter were $3.3 billion, reflecting a sales growth of 5.2% compared to the third quarter of 2024, with constant currency sales growth of 4.0% [17][22] - GAAP operating margin for the third quarter was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin increased to 7.83%, up 19 basis points [18][19] - Third quarter GAAP net income was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [20] - Non-GAAP net income for the third quarter was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23][12] - Global technology group sales grew by 9.7%, driven by practice management software and revenue cycle management solutions [23][14] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, reflecting strong demand for medical products, particularly in the dialysis business [10][22] - International dental merchandise sales grew by 6.0%, driven by sales growth in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [13] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8][6] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8][25] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected to follow the successful launch in the U.K. and Ireland [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives [7][24] - The cyber incident is now behind the company, allowing sales teams to focus on growth [39][6] - The management team remains optimistic about the future, emphasizing the importance of customer partnerships and innovation [32][33] Other Important Information - The company recorded restructuring expenses of $34 million during the third quarter, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The effective tax rate for the third quarter was 22.9%, lower than the previous year's rate of 24.9% [20] Q&A Session Summary Question: Future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement is a multi-year plan, with some benefits expected in 2026 [40][41] Question: Clarification on EPS guidance and market conditions - The midpoint of 2025 EPS guidance increased by $0.05, reflecting momentum in sales growth and a remeasurement gain [44][46] Question: Specialty products operating profit and margin dynamics - Specialty products operating profit was impacted by a strong prior-year comparison and a shift in sales mix towards lower-margin value implants [66][67] Question: Growth trajectory for specialty products - Continued growth in premium implants and improvements in endodontics are necessary for EBIT growth in the specialty business [70][71] Question: Share gains and market conditions - Management noted stable market conditions with some share gains, particularly in the dental and medical sectors [51][52]

Financial Data and Key Metrics Changes - Global sales for Q3 2025 were $3.3 billion, reflecting a sales growth of 5.2% compared to Q3 2024, with constant currency sales growth of 4.0% [17] - GAAP operating margin for Q3 2025 was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin was 7.83%, an increase of 19 basis points [18] - GAAP net income for Q3 2025 was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [19] - Non-GAAP net income for Q3 2025 was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in Q3 2024 [19] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23] - Global technology group sales grew by 9.7%, driven by practice management software and revenue cycle management solutions [23] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, despite lower demand for influenza vaccines and respiratory diagnostic products [22] - International dental merchandise sales grew by 6.0%, with strong performance in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [12] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to long-term goals of high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives [6][24] - The cyber incident is now behind the company, and management is optimistic about sales momentum and market share gains [36] - The effective tax rate for Q3 2025 was 22.9%, with expectations to return to a range of 24-25% in Q4 [19] Other Important Information - The company recorded restructuring expenses of $34 million in Q3 2025, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The company generated strong operating cash flow of $174 million in Q3 2025, compared to $151 million in Q3 2024 [25] - The company celebrated its 30th anniversary since its IPO, highlighting significant growth over the years [28] Q&A Session Summary Question: Comments on future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement from value creation initiatives is a multi-year plan, with some benefits expected in 2026 [36][38] Question: Clarification on EPS guidance and remeasurement gain - The midpoint of 2025 EPS guidance increased by $0.05, reflecting stable markets and sales momentum, with the remeasurement gain contributing $0.08 [39][40] Question: Market stability and share gains - Management noted that the market is generally stable, with some inflation, and that the company is gaining market share in distribution and specialty products [41][42] Question: Specialty products operating profit and margin dynamics - Management acknowledged that while specialty products' operating profit was up, the growth in value implants diluted margins compared to premium implants [49][50] Question: Phasing of the $200 million operating income improvement - Management stated that the $200 million is a net opportunity for operating income improvement, with some reinvestments expected [56][57]