We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Dental Supplies Stocks Likely to Gain From US-China Trade Deal
Read MoreHide Full Article
The Zacks Medical - Dental Supplies industry in the Medical sector is seeing a robust demand for services since the beginning of this year, driven by patient preferences for timely and convenient care, as well as policy initiatives aimed at enhancing access to dental health services. Clinical practices witnessed heightened patient engagement, as reflected in rising prescription volumes. Meanwhile, the trade deal between the United States and China is likely to be a big relief for all industries, including the Zacks Medical – Dental Supplies.
The 90-day tariff reduction on Chinese goods will lower the cost burden on imported medical supplies temporarily, easing pressure on manufacturers and healthcare facilities reliant on Chinese components and consumables. Per the Fortune Business Insight data, the global dental industry is expected to reach $87.65 billion at a CAGR of 11.5% in the 2023-2032 period. Industry participants, such as Cardinal Health (CAH - Free Report) , Labcorp (LH - Free Report) and Align Technology (ALGN - Free Report) , have shown encouraging results so far this year, which is likely to be bolstered by the new trade deal.
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 despite the uncertainty surrounding COVID-19.
Major Trends Shaping the Future of the Medical Dental Supplies Industry
Increasing Burden of Oral Diseases and an Aging Population: The dental equipment market in the United States 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.
Demand for Aesthetic and Cosmetic Dentistry: The dental equipment market in the United States is growing due to the demand for esthetic and cosmetic dentistry. People, influenced by Internet strategies, current trends and media coverage, want to improve their dental appearance. Cosmetic dentistry, which started in the United States, has led to many innovations in the field. Patients in the country are looking for procedures that can enhance their smile and restore dental functions. This trend is boosting the growth of the U.S. dental equipment market.
Technological Advancements: Dental procedures are changing with new technologies like digital imaging, laser dentistry and CAD/CAM systems. These technologies make treatments more accurate and effective, leading to better results.
Additionally, new materials have been developed that are stronger, more compatible, and attractive, providing dental practitioners with more product options. Moreover, AI is being integrated into dental diagnostics and practice management. Tools like AI-powered imaging systems and predictive analytics are improving diagnostic accuracy and operational efficiency.???
Emerging Markets Driving Growth: Emerging markets are significantly propelling the dental equipment industry's growth. Factors such as rising disposable incomes and increased awareness of oral health are driving demand in these regions. In the Asia-Pacific region, countries like India, China and Thailand are experiencing increased demand due to rising disposable incomes and heightened oral health awareness. Similarly, the GCC region anticipates its dental equipment market to reach $1.2 billion by 2028, driven by increased dental awareness and supportive government policies.
U.S.-China Trade Deal: The recent U.S.-Chinatrade deal involves a temporary 90-day reduction in tariffs between the two countries, significantly easing trade tensions. The United States agreed to reduce its tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on U.S. goods from 125% to 10% during this period. The deal will provide a short-term boost to the U.S. medical supplies industry by lowering import costs and easing supply-chain constraints. The temporary tariff rollback may improve availability and reduce prices of medical supplies in the short term.
Zacks Industry Rank
The Zacks Medical Dental Supplies industry falls within the broader Zacks Medical sector.
It carries a Zacks Industry Rank #69, which places it in the top 28% 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 outperformed its sector but underperformed the S&P 500 composite in the past year.
Stocks in this industry have collectively fell 4.1% compared with the Zacks Medical sector’s decline of 16.3%. The S&P 500 has gained 7.8% 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 16.2X compared with the S&P 500’s 20.7X and the sector’s 16.2X.
Over the past five years, the industry has traded as high as 21X and as low as 15.7X, with the median being 18.5X, as the charts show.
Price-to-Earnings Forward Twelve Months (F12M)
Price-to-Earnings Forward Twelve Months (F12M)
3 Promising Dental Supply Stocks
Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company continued to witness strong demand for its Pharmaceutical and Specialty solutions. CAH’s medical products and at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics, are likely to support top-line growth. The company signed two acquisition deals earlier this year to accelerate its strategic growth areas and enhance patient care. CAH is likely to strengthen its multi-specialty business as the GI Alliance buyout is expected to operate as a platform within its Pharmaceutical and Specialty Solutions segment. The acquisition of Advanced Diabetes Supply Group is likely to boost CAH’s at-Home Solutions business.
Cardinal Health is also set to benefit from the recent U.S.-China trade deal, which reduces tariffs on Chinese imports. The company sources about 10% of its products from China and had previously anticipated $200–$300 million in tariff-related costs. The rollback eases cost pressures, likely improving margins and reducing the need for price hikes or supply chain shifts. Cardinal had considered relocating production to Southeast Asia, but the reduced tariffs may delay that move. With strong specialty drug demand already driving multiple upward revisions to its fiscal 2025 profit outlook, the tariff relief further supports earnings growth and boosts investor confidence.
CAHexpects adjusted earnings per share (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. Meanwhile, multiple acquisitions in 2024 are expected to buoy optimism, as they are likely to boost the company's Specialty business and provide access to cutting-edge personnel, capabilities, and technology that meet the important demands of its customers and the business.
The Zacks Consensus Estimate for fiscal 2025 revenues indicate a decline of 1.8% from the year-ago reported figure, while the same for earnings implies an improvement of 7.2%. It carries a Zacks Rank #2 (Buy) at present.
Price and Consensus: CAH
Labcorp is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. The company entered 2025 with solid momentum, demonstrating strong execution of its strategic priorities in the first quarter. LH sees a strong opportunity to become a preferred development lab with the growing biopharma focus on cell and gene therapy. Labcorp sources some medical equipment and consumables from China. Reduced tariffs will likely lower the costs of imported diagnostic instruments and supplies, thereby aiding operational efficiency and cost management.
In oncology, the company expanded its offerings with Plasma Detect, an assay that utilizes whole-genome sequencing and a proprietary machine learning analysis to detect MRD (minimal residual disease). Currently, it is being evaluated in 12 global trials across various tumor types. As part of its focus on autoimmune disease, Labcorp launched multiple sclerosis monitoring profile in 2024 to monitor neurofilament light chain serum and GFAP values in multiple sclerosis patients.
The company also introduced the first companion diagnostic. This business is benefiting from collaborations with leading pharmaceutical and biotechnology companies, with whom it has begun working on potential antivirals, treatments, and CDx assay for vaccines to identify gastric cancer patients eligible for targeted treatment with VYLOY. The Biopharma business is benefiting from collaborations with leading pharmaceutical and biotechnology companies with whom it has begun working on potential antivirals, treatments and vaccines.
Total revenues for 2025 are expected to grow in the range of 6.7-8%. Diagnostics Laboratories revenues are expected to increase in the range of 6.5-7.7%, while Biopharma Laboratory Services' revenues are forecasted to be between 3% and 5%. Meanwhile, Labcorp expects full-year adjusted earnings per share to be in the band of $15.70-$16.40.
The Zacks Consensus Estimate for 2025 revenues indicates year-over-year growth of 6.9% and the same for earnings suggests an improvement of 10.1%. Currently, the company carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: LH
Align Technologies: It manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics and dental records storage. The company is well-positioned to drive the digital revolution in the dental industry with Invisalign Clear Aligners, itero scanners and digital platforms. In this regard, the company’s strong ties with the DSOs hold high potential.
Align Technology is leveraging innovations and market expansion efforts to offset the impact of inflation and supply disruptions. In addition, the successful commercialization of the Invisalign should aid top-line growth going forward. Align Technology, as a medical device company, is heavily reliant on global supply chains, including China, and would benefit from reduced tariffs on imported components and finished products. Lower tariffs reduce input costs and pricing pressures, potentially improving profitability and competitive positioning.
Among the recent developments, Align Technology continues to commercialize the Invisalign Palatal Expander with steady momentum for shipments. In the fourth quarter, the company received the CE mark to market the Invisalign Palatal Expander system in most of Europe and also completed registration with the Medicines and Healthcare Products Regulatory Agency for the United Kingdom and overseas territory. These approvals mark a milestone and help Align Technology commercialize the Invisalign Palatal Expander across most of the major EMEA regions in 2025.
Among the recent developments, Align Technology continues to commercialize the Invisalign Palatal Expander with steady momentum for doctor's submitters and shipments. In the fourth quarter, the company received the CE mark to market the Invisalign Palatal Expander system in most of Europe. It also completed registration with the Medicines and Healthcare Products Regulatory Agency for the United Kingdom and overseas territories during the quarter. These approvals mark a milestone and help Align Technology to commercialize the Invisalign Palatal Expander across most of the major EMEA regions in 2025. For the full year, ALGN 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 San Jose, CA-based company, the Zacks Consensus Estimate for 2025 revenues indicates a 3.9% improvement from the prior-year reported figure, while the same for earnings implies an increase of 10.5%. Presently, the company carries a Zacks Rank of 2.
Price and Consensus: ALGN
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Dental Supplies Stocks Likely to Gain From US-China Trade Deal
The Zacks Medical - Dental Supplies industry in the Medical sector is seeing a robust demand for services since the beginning of this year, driven by patient preferences for timely and convenient care, as well as policy initiatives aimed at enhancing access to dental health services. Clinical practices witnessed heightened patient engagement, as reflected in rising prescription volumes. Meanwhile, the trade deal between the United States and China is likely to be a big relief for all industries, including the Zacks Medical – Dental Supplies.
The 90-day tariff reduction on Chinese goods will lower the cost burden on imported medical supplies temporarily, easing pressure on manufacturers and healthcare facilities reliant on Chinese components and consumables. Per the Fortune Business Insight data, the global dental industry is expected to reach $87.65 billion at a CAGR of 11.5% in the 2023-2032 period. Industry participants, such as Cardinal Health (CAH - Free Report) , Labcorp (LH - Free Report) and Align Technology (ALGN - Free Report) , have shown encouraging results so far this year, which is likely to be bolstered by the new trade deal.
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 despite the uncertainty surrounding COVID-19.
Major Trends Shaping the Future of the Medical Dental Supplies Industry
Increasing Burden of Oral Diseases and an Aging Population: The dental equipment market in the United States 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.
Demand for Aesthetic and Cosmetic Dentistry: The dental equipment market in the United States is growing due to the demand for esthetic and cosmetic dentistry. People, influenced by Internet strategies, current trends and media coverage, want to improve their dental appearance. Cosmetic dentistry, which started in the United States, has led to many innovations in the field. Patients in the country are looking for procedures that can enhance their smile and restore dental functions. This trend is boosting the growth of the U.S. dental equipment market.
Technological Advancements: Dental procedures are changing with new technologies like digital imaging, laser dentistry and CAD/CAM systems. These technologies make treatments more accurate and effective, leading to better results.
Additionally, new materials have been developed that are stronger, more compatible, and attractive, providing dental practitioners with more product options. Moreover, AI is being integrated into dental diagnostics and practice management. Tools like AI-powered imaging systems and predictive analytics are improving diagnostic accuracy and operational efficiency.???
Emerging Markets Driving Growth: Emerging markets are significantly propelling the dental equipment industry's growth. Factors such as rising disposable incomes and increased awareness of oral health are driving demand in these regions. In the Asia-Pacific region, countries like India, China and Thailand are experiencing increased demand due to rising disposable incomes and heightened oral health awareness. Similarly, the GCC region anticipates its dental equipment market to reach $1.2 billion by 2028, driven by increased dental awareness and supportive government policies.
U.S.-China Trade Deal: The recent U.S.-Chinatrade deal involves a temporary 90-day reduction in tariffs between the two countries, significantly easing trade tensions. The United States agreed to reduce its tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on U.S. goods from 125% to 10% during this period. The deal will provide a short-term boost to the U.S. medical supplies industry by lowering import costs and easing supply-chain constraints. The temporary tariff rollback may improve availability and reduce prices of medical supplies in the short term.
Zacks Industry Rank
The Zacks Medical Dental Supplies industry falls within the broader Zacks Medical sector.
It carries a Zacks Industry Rank #69, which places it in the top 28% 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 outperformed its sector but underperformed the S&P 500 composite in the past year.
Stocks in this industry have collectively fell 4.1% compared with the Zacks Medical sector’s decline of 16.3%. The S&P 500 has gained 7.8% 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 16.2X compared with the S&P 500’s 20.7X and the sector’s 16.2X.
Over the past five years, the industry has traded as high as 21X and as low as 15.7X, with the median being 18.5X, as the charts show.
Price-to-Earnings Forward Twelve Months (F12M)
Price-to-Earnings Forward Twelve Months (F12M)
3 Promising Dental Supply Stocks
Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company continued to witness strong demand for its Pharmaceutical and Specialty solutions. CAH’s medical products and at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics, are likely to support top-line growth. The company signed two acquisition deals earlier this year to accelerate its strategic growth areas and enhance patient care. CAH is likely to strengthen its multi-specialty business as the GI Alliance buyout is expected to operate as a platform within its Pharmaceutical and Specialty Solutions segment. The acquisition of Advanced Diabetes Supply Group is likely to boost CAH’s at-Home Solutions business.
Cardinal Health is also set to benefit from the recent U.S.-China trade deal, which reduces tariffs on Chinese imports. The company sources about 10% of its products from China and had previously anticipated $200–$300 million in tariff-related costs. The rollback eases cost pressures, likely improving margins and reducing the need for price hikes or supply chain shifts. Cardinal had considered relocating production to Southeast Asia, but the reduced tariffs may delay that move. With strong specialty drug demand already driving multiple upward revisions to its fiscal 2025 profit outlook, the tariff relief further supports earnings growth and boosts investor confidence.
CAHexpects adjusted earnings per share (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. Meanwhile, multiple acquisitions in 2024 are expected to buoy optimism, as they are likely to boost the company's Specialty business and provide access to cutting-edge personnel, capabilities, and technology that meet the important demands of its customers and the business.
The Zacks Consensus Estimate for fiscal 2025 revenues indicate a decline of 1.8% from the year-ago reported figure, while the same for earnings implies an improvement of 7.2%. It carries a Zacks Rank #2 (Buy) at present.
Price and Consensus: CAH
Labcorp is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. The company entered 2025 with solid momentum, demonstrating strong execution of its strategic priorities in the first quarter. LH sees a strong opportunity to become a preferred development lab with the growing biopharma focus on cell and gene therapy. Labcorp sources some medical equipment and consumables from China. Reduced tariffs will likely lower the costs of imported diagnostic instruments and supplies, thereby aiding operational efficiency and cost management.
In oncology, the company expanded its offerings with Plasma Detect, an assay that utilizes whole-genome sequencing and a proprietary machine learning analysis to detect MRD (minimal residual disease). Currently, it is being evaluated in 12 global trials across various tumor types. As part of its focus on autoimmune disease, Labcorp launched multiple sclerosis monitoring profile in 2024 to monitor neurofilament light chain serum and GFAP values in multiple sclerosis patients.
The company also introduced the first companion diagnostic. This business is benefiting from collaborations with leading pharmaceutical and biotechnology companies, with whom it has begun working on potential antivirals, treatments, and CDx assay for vaccines to identify gastric cancer patients eligible for targeted treatment with VYLOY. The Biopharma business is benefiting from collaborations with leading pharmaceutical and biotechnology companies with whom it has begun working on potential antivirals, treatments and vaccines.
Total revenues for 2025 are expected to grow in the range of 6.7-8%. Diagnostics Laboratories revenues are expected to increase in the range of 6.5-7.7%, while Biopharma Laboratory Services' revenues are forecasted to be between 3% and 5%. Meanwhile, Labcorp expects full-year adjusted earnings per share to be in the band of $15.70-$16.40.
The Zacks Consensus Estimate for 2025 revenues indicates year-over-year growth of 6.9% and the same for earnings suggests an improvement of 10.1%. Currently, the company carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: LH
Align Technologies: It manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics and dental records storage. The company is well-positioned to drive the digital revolution in the dental industry with Invisalign Clear Aligners, itero scanners and digital platforms. In this regard, the company’s strong ties with the DSOs hold high potential.
Align Technology is leveraging innovations and market expansion efforts to offset the impact of inflation and supply disruptions. In addition, the successful commercialization of the Invisalign should aid top-line growth going forward. Align Technology, as a medical device company, is heavily reliant on global supply chains, including China, and would benefit from reduced tariffs on imported components and finished products. Lower tariffs reduce input costs and pricing pressures, potentially improving profitability and competitive positioning.
Among the recent developments, Align Technology continues to commercialize the Invisalign Palatal Expander with steady momentum for shipments. In the fourth quarter, the company received the CE mark to market the Invisalign Palatal Expander system in most of Europe and also completed registration with the Medicines and Healthcare Products Regulatory Agency for the United Kingdom and overseas territory. These approvals mark a milestone and help Align Technology commercialize the Invisalign Palatal Expander across most of the major EMEA regions in 2025.
Among the recent developments, Align Technology continues to commercialize the Invisalign Palatal Expander with steady momentum for doctor's submitters and shipments. In the fourth quarter, the company received the CE mark to market the Invisalign Palatal Expander system in most of Europe. It also completed registration with the Medicines and Healthcare Products Regulatory Agency for the United Kingdom and overseas territories during the quarter. These approvals mark a milestone and help Align Technology to commercialize the Invisalign Palatal Expander across most of the major EMEA regions in 2025. For the full year, ALGN 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 San Jose, CA-based company, the Zacks Consensus Estimate for 2025 revenues indicates a 3.9% improvement from the prior-year reported figure, while the same for earnings implies an increase of 10.5%. Presently, the company carries a Zacks Rank of 2.
Price and Consensus: ALGN