While the long-term outlook is good for both Patterson and Schein, their stocks look pricey. Investors are likely to get a chance to buy them for less before the economy revives.

On the flip side, Cramer said he's adding dental supply makers Patterson Companies (PDCO) and Henry Schein (HSIC) to the Sell Block.

He said in the tougher economic times, dentists are beginning to tighten their belts, opting for lower cost supplies from Mexico as opposed to the higher priced ones from these two vendors.

Dentists are pulling back, especially in the area on consumable products, which accounts for 35% of Patterson's and 30% of Henry Schein's earnings, he said. Yet Wall Street hasn't gotten the message, with analysts holding onto their buy recommendations, he added. ("Mad Money Recap," 4-9-09)

8

Robert Baird downgraded two dental stocks -- PDCO and XRAY-- to neutral. Recent checks show that dentist and ordering fewer consumables.

Great market demographics - pets and dentists.

90
mkt cap - 5.45B
roa - 11.15
roe - 15.89
trailing p/e - 25.82
fwd p/e - 19.82
PEG - 1.36
# qtrs missed in last 4: 2 (Jan 07, Apr 07)

Sep 40 - 1.10

P/E is 24.41, and the PEG is 1.34

Upgraded by Robert W. Baird from Neutral to Outperform

Upgraded by Matrix Research from Sell to Hold

Downgraded by Credit Suisse from Outperform to Neutral