Does Henry Schein (HSIC) Have Potential for Margin Improvement and Increased Shareholder Value?

Greenlight Capital, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Greenlight Capital’s investment strategy focuses on constructing a bottom-up portfolio comprising undervalued long positions and overvalued short positions, while also including a macro book to hedge risks and capture insights. The Partnership returned 9.0% (net) in 2025 compared to 17.9% for the S&P 500 index. In contrast, it returned 8.5% in Q4, compared to 2.7% for the index. The Partnership has returned $6.1 billion, net of fees and expenses, to its investors since its inception in May 1996.  For more information on the Partnership’s top picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Greenlight Capital highlighted stocks like Henry Schein, Inc. (NASDAQ:HSIC) as a newly added holding. Henry Schein, Inc. (NASDAQ:HSIC), a distributor of dental products and services, has recently been added to the portfolio. On January 29, 2026, Henry Schein, Inc. (NASDAQ:HSIC) stock closed at $74.34 per share. One-month return of Henry Schein, Inc. (NASDAQ:HSIC) was -3.23%, and its shares lost 7.08% of their value over the last 52 weeks. Henry Schein, Inc. (NASDAQ:HSIC) has a market capitalization of $9.015 billion.

Greenlight Capital stated the following regarding Henry Schein, Inc. (NASDAQ:HSIC) in its fourth quarter 2025 investor letter:

“Henry Schein, Inc. (NASDAQ:HSIC) is a leading distributor of dental and medical products. Since COVID, cost inefficiencies have led to margin erosion that we believe is now set to be addressed by newly installed activist board members and a pending CEO change. Should the company be successful in correcting these issues and improving its e-commerce capabilities, we expect margin improvement that will lead to significant free cash flow generation and share buybacks. We purchased our shares at an average price of $68.11. HSIC shares ended the quarter at $75.58.”

Henry Schein, Inc. (NASDAQ:HSIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Henry Schein, Inc. (NASDAQ:HSIC) at the end of the third quarter, up from 48 in the previous quarter. Henry Schein, Inc. (NASDAQ:HSIC) generated global sales of $3.3 billion in Q3 2025, with sales growth of 5.2% from Q3 2024. While we acknowledge the risk and potential of Henry Schein, Inc. (NASDAQ:HSIC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Henry Schein, Inc. (NASDAQ:HSIC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Henry Schein, Inc. (NASDAQ:HSIC) and shared Upslope Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.