4 Dental Supplies Stocks Likely to Gain Amid Rising Tariff Risks

The Zacks Medical - Dental Supplies industry in the Medical sector is reflecting weakness amid rising tariffs by the U.S. government on its trading partners, especially China.  The tariffs are likely to stay and continue to impact industry sales for the rest of 2025, although several countries are negotiating a trade deal with the United States, which may lead to lower rates for specific countries. The tariffs are also leading to a rise in costs, disrupting supply chains and strategic supply shifts in the dental supplies industry, affecting manufacturers, distributors, dental practices, and ultimately patients through higher prices and potential service delays or reductions.

Moreover, there is a weakness in demand for elective procedures across various product lines in the United States, which is also hurting sales. There is a slump in U.S. demand for CAD/CAM and imaging as well as preventive/restorative products. However, these factors are likely to have short-term effects as the prevalent dental trends should drive growth over the long term. Per a Grand View Research data, the global dental industry is expected to reach $610.4 billion at a CAGR of 4.5% in the 2023-2032 period. Industry participants, such as McKesson MCK, Cardinal Health CAH, West Pharmaceutical Services WST and The Cooper Companies COO are likely to deliver favorable performance amid weakness in the industry.

Industry Description

The global dental industry consists of companies that design, develop, make and market dental products, such as consumables, laboratory products and specialty items. Some of these companies also offer software and systems for practice management, patient education and office administration. Dental stocks have been drawing attention amid a recovery in sales following the weakness caused by pandemic-induced disruptions. The market has been recovering and maintaining its position.

Notably, dental care is provided based on the advice and recommendations of the American Dental Association and the Centers for Disease Control and Prevention. Thanks to the rebound seen by the companies in this space, patient volume has been increasing steadily following the removal of COVID-19 restrictions.

Major Trends Shaping the Future of the Medical Dental Supplies Industry

Increasing Burden of Oral Diseases and an Aging Population:The U.S. dental equipment market is driven by the country's growing geriatric population. This group is a significant demographic in dental surgeries and other dental practices. Per the U.S. Census Bureau, the country had 55.8 million people aged 65 and above in 2020. Old age increases the likelihood of dental issues, including cavities, root and coronal caries, and periodontitis. Consequently, the rising number of seniors in the country is a key contributor to the market’s growth.

Technological Innovations:Advances such as CAD/CAM systems, 3D imaging, laser dentistry, AI diagnostics, digital dentistry, and improved bonding materials enhance treatment efficacy and broaden product use, fueling market growth.

Growing Awareness and Emphasis on Preventive Care:Public health initiatives and rising oral care awareness among populations increase consumption of preventive dental products like fluoride treatments, sealants and prophylaxis pastes.

Minimally Invasive and Cosmetic Dentistry Trends: Increasing preference for less invasive treatments and cosmetic procedures such as teeth whitening and veneers expands market segments for specialized dental consumables and equipment.

Expansion of Dental Clinics and Group Practices:More dental care facilities, including hospitals, clinics, and corporate dental chains, increase product demand due to higher patient footfall and standardized usage protocols.

Regional Market Growth Drivers:Emerging markets, especially in Asia-Pacific, benefit from rising healthcare expenditure, improved access to care, government support, and dental tourism, contributing to faster growth rates.

Government Initiatives and Insurance Coverage:Policies supporting oral health, improved dental insurance coverage, and public dental health programs enhance accessibility and consumption of dental supplies.

Economic Factors and Healthcare Infrastructure:Strong healthcare infrastructure and higher disposable income in developed regions like North America support adoption of advanced dental products and technologies.

Tariff War Raises Uncertainty: U.S. tariffs in 2025 have significantly affected the dental supplies industry by increasing costs on essential imported items such as burs, handpieces, CAD/CAM blocks, dental implants, and prosthetics, many of which are sourced from China, Europe and Mexico. Tariffs ranging from 10% to more than 50% have increased prices and caused supply-chain disruptions, forcing manufacturers, distributors, and dental practices to face higher operational costs. These increases are often passed to dental clinics and patients, raising treatment costs and slowing inventory restocking. The industry is responding by shifting supply chains toward domestic or regional production to reduce tariff exposure, although this transition is gradual. Dental associations are actively advocating for tariff exemptions to alleviate cost burdens and maintain care accessibility.

Zacks Industry Rank

The Zacks Medical Dental Supplies industry falls within the broader Zacks Medicalsector.

It carries a Zacks Industry Rank #76, which places it in the top 31% of 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present a few dental supply stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Performance

The industry has underperformed its sector as well as the S&P 500 composite in the past year.

Stocks in this industry collectively fell 0.4% compared with the Zacks Medical sector’s decline of 18.4%. The S&P 500 has gained 20.5% in the same time frame.

One-Year Price Performance

Industry's Current Valuation

On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 16.05X compared with the S&P 500’s 22.7X and the sector’s 18.4X.

Over the past five years, the industry has traded as high as 21.8X and as low as 16.05X, with the median being 18.9X, as the charts show.

Price-to-Earnings Forward Twelve Months (F12M)

Price-to-Earnings Forward Twelve Months (F12M)

4 Promising Dental Supply Stocks

West Pharmaceutical is positioned to sustain growth momentum through the rest of 2025, supported by a robust mix of proprietary product demand, innovation-led launches, and capacity expansions. Proprietary Products, particularly high-value product (HVP) components such as NovaPure and Daikyo offerings, remain central growth drivers, benefiting from strong adoption in biologics, vaccines and injectable therapies. Elevated demand for self-injection systems and containment solutions, especially in GLP-1 and oncology pipelines, is expected to underpin order volumes.

Operational efficiency initiatives, including advanced automation, expanded molding capabilities, and footprint optimization, are enhancing throughput and cost leverage. Strategic collaborations with leading pharma and biotech customers are deepening pipeline visibility, while increased engagement in early-stage development projects positions West Pharmaceuticalto capture downstream commercial manufacturing opportunities. The company’s focus on integrated drug delivery platforms, combining containment and delivery device solutions also strengthens its value proposition.

Challenges include customer inventory management actions that could create short-term ordering volatility, competitive pricing pressure in commoditized components, and macro headwinds such as raw material cost fluctuations and currency impacts. Regulatory timelines for certain customer programs and evolving quality compliance standards also introduce execution risks. Furthermore, demand normalization in pandemic-related products could weigh on year-over-year comparisons in select categories.

Total revenues for 2025 are expected to grow in the range of 3-3.75% organically. WST now projects full-year revenues to be between $3.04 billion and $3.06 billion (up from its previous guidance of $2.945-$2.975 billion). For the full year, adjusted EPS is anticipated to be in the range of $6.65-$6.85 (up from the previous guidance of $6.15-$6.35). The updated adjusted-diluted EPS guidance also incorporates an estimate of $15-$20 million for the net impact of recently implemented tariffs for the remainder of 2025.

The Zacks Consensus Estimate for 2025 revenues indicates year-over-year growth of 4.2% and the same for earnings suggests a decline of 2.22%. Currently, the company flaunts a Zacks Rank #1 (Strong Buy).

Price and Consensus: WST

McKesson enters the remainder of 2025 with strong operational momentum, driven by multiple growth levers across its diversified healthcare services portfolio. Specialty and oncology distribution remains a key engine, bolstered by the acquisitions of Core Ventures and PRISM Vision, which expand McKesson’s footprint in oncology, retina and ophthalmology. These platforms not only add provider scale but also enhance demand for group purchasing, distribution and practice management solutions.

The Prescription Technology Solutions segment continues to benefit from high demand for access and affordability programs, particularly prior authorization services for GLP-1 medications, supported by its extensive connectivity to pharmacies and providers. In U.S. Pharmaceutical, increased prescription volumes from national retail accounts and specialty categories, combined with operational efficiencies, underpin profitability. McKesson’s ongoing investment in automation and cold-chain capabilities strengthens distribution resilience, enhances throughput and supports high-growth therapeutic areas.

However, McKesson faces potential challenges from regulatory shifts such as Medicare payment model changes, evolving drug pricing policies, and uncertainty over potential pharmaceutical tariffs. Competitive pressures in oncology and biopharma services, payer formulary decisions, and supply chain complexities in specialty pharmaceuticals could also temper growth. Additionally, execution on recent acquisitions and macroeconomic pressures on healthcare utilization remain important watchpoints.

McKesson raised its fiscal 2026 earnings per share (EPS) guidance to $37.10-$37.90 from $36.90-$37.70 for fiscal 2026, on its first-quarter earnings call. The company did not provide a total and segmental sales outlook amid its potential spin-off of the surgical business.

The Zacks Consensus Estimate for fiscal 2025 revenues indicates a gain of 13.3% from the year-ago reported figure, while the same for earnings implies an improvement of 13%. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price and Consensus: MCK

Cardinal Health is set to carry operational momentum into the remainder of 2025, supported by solid performance in both its Pharmaceutical and Medical segments. In Pharmaceutical, growth is expected from sustained volume gains with large retail chains, continued strength in specialty distribution, and expanding relationships with health systems. Specialty therapeutics, particularly in oncology and complex chronic care, remain a major revenue driver, complemented by Cardinal’s differentiated distribution network and suite of manufacturer services. Biosimilar adoption and increasing demand for patient support programs also add to the segment’s growth profile.

The Medical segment is benefiting from ongoing recovery in procedural volumes, robust demand for Cardinal Health’s at-Home Solutions and improving supply-chain stability. Strategic actions to streamline the product portfolio, optimize manufacturing, and invest in automation are enhancing operational efficiency and margins. Recent product launches in single-use surgical devices and lab testing consumables further strengthen its market hold.

Challenges include pricing pressures from competitive bidding in both Pharmaceutical and Medical, potential margin compression from generic deflation, and lingering inflationary impacts on freight and labor. Regulatory shifts in drug pricing, evolving biosimilar reimbursement policies, and customer consolidation in the retail pharmacy space may also create headwinds. Additionally, execution risks tied to portfolio simplification and cost transformation initiatives remain watchpoints for the near term.

CAHexpects adjusted EPS to be in the $8.05-$8.15 range for fiscal 2025. The company expects its fiscal 2026 EPS to grow in double-digit percentage points.

The Zacks Consensus Estimate for fiscal 2025 revenues indicates a decline of 1.8% from the year-ago reported figure, while the same for earnings implies an improvement of 8.6%. It carries a Zacks Rank #2 at present.

Price and Consensus: CAH

Cooper Companies: It is positioned for steady performance through the rest of 2025, supported by resilient demand in both CooperVision (“CVI”) and CooperSurgical (“CSI”). In CVI, momentum is expected from the continued global uptake of daily silicone hydrogel lenses, particularly the clariti and MyDay portfolios, with MyDay toric and multifocal lines driving mix improvement. Specialty lenses, including MiSight for myopia management, are gaining broader market adoption and geographic penetration, aided by expanding practitioner training and awareness campaigns. Emerging market growth, especially in Asia-Pacific, further strengthens the volume outlook.

Within CSI, fertility and women’s health offerings remain key contributors, driven by increased utilization of PARAGARD and surgical devices, along with sustained strength in the fertility solutions portfolio. Recent acquisitions in reproductive health are enhancing CSI’s integrated offering and customer reach. Additionally, ongoing investments in digital tools, data-driven marketing and supply-chain optimization are expected to support both segments’ operating efficiency.

Challenges include competitive pricing dynamics in contact lenses, potential inventory destocking from distributors, and macroeconomic pressures in certain geographies. Regulatory scrutiny in fertility treatments, foreign currency volatility and integration risks from recent acquisitions also present near-term headwinds. Shifts in consumer spending patterns, particularly in discretionary healthcare purchases, could temper growth in select markets.

For the full year, COO expects revenue growth to be in the low single digits, which suggests approximately 2% of unfavorable foreign exchange impact at current spot rates. The 2025 non-GAAP operating margin is expected to be approximately 22.5%.

For this Pleasanton, CA-based company, the Zacks Consensus Estimate for 2025 revenues indicates a 5.7% improvement from the prior-year reported figure, while the same for earnings implies an increase of 10%. Presently, the company carries a Zacks Rank of 2.

Price and Consensus: COO

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This article originally published on Zacks Investment Research (zacks.com).

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