Buy Henry Schein To Receive 'Resiliency Premium' In Equity Portfolios

Aug. 25, 2022 10:45 AM ETHenry Schein, Inc. (HSIC)
Zach Bristow profile picture
Zach Bristow
2.47K Followers

Summary

  • Henry Schein, Inc. offers a resiliency factor to equity portfolios amid the current macro climate.
  • Those seeking to scale up weighting to defensives and reduce portfolio variance might consider the long-term cash compounder.
  • We note that ROIC and FCF yield are back at or above FY15-17 levels, albeit on an 18% lower market cap.
  • We price HSIC at $87.30 and revise our recommendation up from hold to buy.
  • As such, HSIC offers a 'resiliency premium' that we believe will be rewarded by the market over the coming 6-12 months.

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Investment Summary

Resiliency is a key factor to equity portfolios in the forward-looking climate. Maintaining a constant weight to quality and resiliency are paramount to reduce portfolio variance and reduce equity beta. We are seeking exposure to names that exemplify quality

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Data: Updata

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Data: HB Insights, HSIC SEC Filings and Prospectus

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Data: HB Insights, HSIC SEC Filings and Prospectus

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Data: HB Insights, HSIC SEC Filings

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Data: HB Insights, HSIC SEC Filings

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Data: HB Insights, HSIC SEC Filings

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Data: HB Insights

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Data: HB Insights, Portfolio Visualizer

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Data: HB Insights, Portfolio Visualizer

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Data: HB Insights, Portfolio Visualizer

This article was written by

Zach Bristow profile picture
2.47K Followers
Buy side equity portfolio strategist serving mandates throughout EU/US/APAC. Helping you position your portfolios for the future is my top priority. Shoot me a message to discuss trade ides or talk portfolio construction. Disclaimer:The opinions expressed in all articles do not constitute as investment advice. Please remember to conduct your own due diligence.

Disclosure: I/we have a beneficial long position in the shares of HSIC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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