DENTSPLY Stock Implied Volatility Suggests Big Move Ahead

The options market is predicting a spike in DENTSPLY SIRONA Inc. XRAY stock, with the Jan 16, 2026 $2.50 Call having high implied volatility. Analysts are divided, with two increasing earnings estimates and five decreasing them, leading to a Zacks Rank #3 (Hold) in the Medical - Dental Supplies industry. Options traders are pricing in a big move for DENTSPLY shares, and the company's fundamental picture is uncertain.

The options market is signaling a potential spike in DENTSPLY SIRONA Inc. (XRAY) stock, with the Jan 16, 2026 $2.50 Call option exhibiting high implied volatility [1]. This suggests that investors are anticipating significant movement in the stock price, either up or down, due to an impending event.

Analysts remain divided on DENTSPLY SIRONA's prospects. Over the past 60 days, two analysts have increased their earnings estimates for the current quarter, while five have decreased theirs. This has resulted in a Zacks Rank #3 (Hold) for the Medical - Dental Supplies industry, placing the company in the Bottom 24% of the Zacks Industry Rank [1].

Options traders are pricing in a substantial move for DENTSPLY shares, indicating a potential trade opportunity. Traders often look to sell premium on options with high implied volatility, hoping that the underlying stock's movement will not match expectations by expiration [1].

The fundamental picture for DENTSPLY SIRONA is mixed. The company operates in the dental and healthcare solutions sector, with core segments including essential dental solutions (EDS), orthodontic & implant solutions (OIS), connected technology solutions (CTS), and Wellspect Healthcare [2]. The EDS segment showed steady growth in Q2 2025, while the OIS and CTS segments experienced declines, largely due to softening demand and regulatory scrutiny of direct-to-consumer aligner models [2].

The company's new CEO, Dan Scavilla, is focusing on stabilizing operations and improving customer experience. The strategic reset aims to turn DENTSPLY SIRONA into a trusted partner for dentists, integrating products to achieve end-to-end solutions and create a digital workflow [2].

Valuation-wise, DENTSPLY SIRONA trades at a $2.8 billion market cap with an enterprise value of around $5.2 billion. The company is expected to generate $3.8 billion in revenues by 2026, indicating a forward EV/S ratio of 1.4, which is relatively low compared to the sector's median of 3.5 [2].

Despite recent setbacks, DENTSPLY SIRONA's revenue potential and strategic reset offer a bullish outlook. However, the company's turnaround efforts will depend on successful execution of its new strategies.

References:
[1] https://finance.yahoo.com/news/options-market-predicting-spike-dentsply-134500406.html
[2] https://seekingalpha.com/article/4814795-dentsply-sirona-turnaround-potential-and-digital-workflows