Why DENTSPLY SIRONA (XRAY) is a Hidden Momentum Gem Despite the 'Hold' Rating

Imagine a stock that’s soaring 28.1% in just four weeks—yet the market’s still ignoring it because of a lukewarm “Hold” rating. That’s exactly what’s happening with DENTSPLY SIRONA (XRAY). Today, I’m here to explain why this dental healthcare giant is a must-watch momentum play—even with its neutral Zacks Rank—and why investors are leaving money on the table if they write it off.

The Contradiction: Hold Rating vs. Red-Hot Momentum

Let’s start with the basics. DENTSPLY SIRONA (XRAY) currently sports a Zacks Rank #3 (Hold). On paper, that’s a “neutral” signal, suggesting the stock might just tread water over the next few months. But here’s the catch: the company’s Momentum Score is an A, and its VGM (Value-Growth-Momentum) Score is also an A. These aren’t small details—they’re red flags that the market is missing something big.

Let’s break this down:
- Momentum Score of A: This means the stock is in a strong upward price trend, fueled by rising analyst estimates and investor demand. Over the last month, XRAY’s shares have surged 28.1%—a move that’s outpaced 90% of its peers in the dental healthcare sector.
- VGM Score of A: This composite grade signals that XRAY isn’t just a momentum story—it’s also a value play (forward P/E of 8.88) and a growth story (earnings estimates for fiscal 2025 have been raised six times in the last 60 days).

Why Zacks’ “Hold” Doesn’t Tell the Whole Story

The Zacks Rank is a short-term, 1–3 month outlook based on earnings estimate revisions. A #3 rank means the consensus on Wall Street is “wait-and-see.” But here’s the key: the Zacks Rank and Style Scores (like Momentum) are meant to be used together.

The research is clear: stocks with a #3 Zacks Rank and an A or B Momentum Score still have upside potential. As Zacks methodology states, “If you’re looking at stocks with a #3 (Hold) rank, it’s important they have [Style Scores] of A or B to ensure as much upside potential as possible.”

The Proof is in the Performance

Let’s look at the data:
- Momentum Works: Zacks’ own research shows that stocks with Momentum Scores of A/B outperform the market. For example, Hims & Hers Health (HIMS), a #2-ranked stock with an A Momentum Score, soared 115% in four weeks earlier this year. XRAY’s 28.1% surge over the same period isn’t just a fluke—it’s a trend.
- Earnings are Improving: Analysts have boosted XRAY’s fiscal 2025 EPS estimate by $0.03 to $1.87 per share. The stock has a 2.7% average earnings “surprise” rate, meaning it’s consistently beating expectations—a sign of operational strength.

Why You Can’t Ignore This Now

The combination of a Hold rank and A-rated momentum creates a buying opportunity that’s too good to pass up. Here’s why:
1. Valuation is a Bargain: At an 8.88 forward P/E, XRAY is trading at a discount to its growth peers. This makes it a rare “value” play in a sector that’s often overvalued.
2. Sector Dominance: DENTSPLY SIRONA is a global leader in dental consumables (implants, imaging systems) and medical devices (urology catheters). As healthcare spending rises, this stock is positioned to capitalize.
3. Momentum is Self-Fulfilling: When a stock rises 28% in a month, it attracts more buyers. This creates a “positive feedback loop” that can push prices higher—even if short-term earnings are flat.

The Takeaway: Don’t Let the ‘Hold’ Fool You

The Zacks Rank is just one piece of the puzzle. When you layer in the A Momentum Score, A VGM Score, and the 28.1% price surge, XRAY isn’t a “Hold”—it’s a strategic buy.

Investors who focus solely on the Zacks Rank are missing the bigger picture. This is a stock that’s got value, growth, and momentum all aligned. And with the dental healthcare market expected to grow at 6% annually through 2030, XRAY is set to profit handsomely.

Final Call: Act Now—Before the Crowd Catches On

Here’s the bottom line: XRAY is flying under the radar because of its neutral Zacks Rank, but the momentum and fundamentals are undeniable. This isn’t just a trade—it’s a bet on a company that’s quietly becoming a leader in two booming industries.

Take action now—add XRAY to your portfolio while it’s still underappreciated. You don’t want to be the one looking back and asking, “Why didn’t I buy when it was at $X?”

This is a stock that’s primed to outperform over the next 6–12 months. Don’t let the “Hold” label scare you away. The momentum is real—and so are the rewards.

The views expressed here are for informational purposes only and should not be taken as investment advice. Always consult a financial advisor before making investment decisions.