Henry Schein Attracts Institutional Investment With Strong Quarterly Results and Ambitious $200 Million Efficiency Plan

The Catalyst Behind the Fund’s Move

Henry Schein’s latest quarterly results today provided fresh momentum for portfolio managers seeking stable, cash-generative healthcare businesses. The medical distributor reported third-quarter revenue climbing 5% to $3.3 billion, with sales accelerating across every reportable segment. More notably, adjusted EBITDA reached $295 million while non-GAAP EPS surged 13% year-over-year to $1.38—performance that likely caught the attention of disciplined investors.

Management’s forward guidance reinforced this bullish narrative. The company raised full-year non-GAAP EPS guidance to $4.88-$4.96 and lifted sales growth expectations to 3%-4%. These signals suggest the healthcare giant is navigating its operating environment with confidence despite near-term market headwinds.

Zuckerman’s Strategic Position Building

Chicago-based Zuckerman Investment Group expanded its Henry Schein stake by acquiring 72,040 additional shares in a November 13 SEC filing, reflecting an investment increase of approximately $3.38 million from the prior quarter. The fund’s total position now stands at 281,339 shares valued at $18.67 million as of September 30.

This move aligns with Zuckerman’s portfolio philosophy. The fund manages $1.08 billion across 157 U.S. equity positions, typically favoring established businesses with predictable cash flows over speculative growth plays. Henry Schein’s position now represents 1.73% of the fund’s reported assets under management, placing it outside its top-five holdings.

Hidden Operating Momentum

Beneath Henry Schein’s headline numbers lies a more compelling operational story. Global technology sales grew nearly 10%, while specialty products advanced close to 6%. Management now projects more than $200 million in operating income improvement from value creation initiatives over the coming years—a commitment suggesting confidence in its business model.

The company’s capital management strategy further supports the investment thesis. During the quarter alone, Henry Schein repurchased $229 million of stock, with $980 million remaining under authorization. For long-term investors, this consistent buyback activity combined with improving fundamentals justifies renewed interest at current valuations.

Market Context and Portfolio Positioning

As of this week, Henry Schein shares trade at $76.33, having appreciated approximately 8% over the past twelve months. While this performance trails the S&P 500’s 15.5% gain in the same period, the stock’s relative underperformance may paradoxically appeal to value-focused managers seeking overlooked opportunities in stable sectors.

Zuckerman’s other major holdings underscore its preference for quality franchises: Vistra Corp ($99.39 million), Ulta Beauty ($57.49 million), Alphabet ($42.09 million), McKesson ($36.52 million), and Microsoft ($34.83 million). The Henry Schein addition fits naturally into this portfolio of capital-efficient, dividend-capable enterprises.

Why the Timing Makes Sense

The decision to expand exposure amid quarterly results today reflects a straightforward calculation: Henry Schein combines steady cash generation, improving operational efficiency, and shareholder-friendly capital allocation—precisely the characteristics institutional investors prioritize during uncertain market cycles. The fund’s expansion suggests confidence that the company’s multiyear transformation initiatives will compound long-term value.