Growth Trajectory and Attractive Valuations Support Henry Schein’s (HSIC) Bullish Thesis

The MD Sass Concentrated Value Strategy reported in its second-quarter investor update that AI infrastructure stocks led market growth in the first half of 2026, with the Russell 1000 Value index increasing by 16.3%. This outpaced the S&P 500's 10.2% and the Russell 1000 Growth's 5.3% gains. The 7.7% of the index that represented AI infrastructure contributed nearly 70% of its returns.

MD Sass' portfolio rose 10.0% in the quarter, less than the 13.9% gain of the Russell 1000 Value Index. The strategy faced challenges due to limited exposure to AI infrastructure companies and the Energy sector, which returned about 20% in the first half. MD Sass remains optimistic about Henry Schein Inc. (HSIC), a leading distributor of dental products and services, after meeting with the new CEO, Fred Lowery.

The company's strong earnings results and positive outlook have created favorable conditions for it to exceed full-year guidance. MD Sass sees significant cost reductions and accelerating revenue growth as key drivers for material positive earnings revisions as the year progresses.