The Zacks Medical - Dental Supplies industry in the Medical sector is entering the final quarter of 2025 with strong momentum and bright prospects for the next three months. Fueled by persistent innovation, an aging population with increasing healthcare needs, and a steady economic environment, both sectors are poised for continued growth and significant advancements. The integration of cutting-edge technology, from artificial intelligence in diagnostics to 3D printing in dental labs, is not only enhancing patient care but also driving efficiency and profitability across the board.

The dental industry, in particular, is experiencing a period of dynamic transformation. Increased consumer focus on both oral health and cosmetic dentistry, combined with the rise of modern practice models like Dental Service Organizations (DSOs), is expanding market reach and improving access to care. Despite ongoing operational challenges like staffing and overhead costs, strategic investments in digital tools and a patient-centric approach are paving the way for a successful close to the year.

The broader medical device sector echoes this positive outlook, with robust demand for new technologies and solutions addressing a wide array of health conditions. Per 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 Quick QuoteMCK - Free Report) , Cardinal Health (CAH Quick QuoteCAH - Free Report) , West Pharmaceutical Services (WST Quick QuoteWST - Free Report) and The Cooper Companies (COO Quick QuoteCOO - Free Report) , 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 among companies in this space, patient volumes have 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.

The rise in costs is 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 Medical sector.

It carries a Zacks Industry Rank #51, which places it in the top 21% of 243 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 collectively gained 7.3% against the Zacks Medical sector’s decline of 5.6%. The S&P 500 has gained 21.5% 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 17.23X compared with the S&P 500’s 23.77X and the sector’s 19.88X.

Over the past five years, the industry has traded as high as 21.75X and as low as 15.94X, with the median being 21.17X, as the charts show.

Price-to-Earnings Forward Twelve Months (F12M)

Price-to-Earnings Forward Twelve Months (F12M)

4 Promising Dental Supply Stocks

McKesson heads into the remainder of 2025 with solid operational momentum, supported by multiple growth drivers across its broad healthcare services portfolio. Specialty and oncology distribution remain central to its strategy, strengthened by the recent acquisitions of Core Ventures and PRISM Vision, which extend McKesson’s reach in oncology, retina, and ophthalmology. These additions expand provider networks and increase demand for group purchasing, distribution, and practice management services.

The Prescription Technology Solutions segment continues to benefit from strong demand for access and affordability programs — particularly prior authorization support for GLP-1 therapies — leveraging McKesson’s deep connectivity with pharmacies and healthcare providers. In the U.S. Pharmaceutical segment, higher prescription volumes from national retail accounts and specialty categories, combined with efficiency gains, continue to drive profitability. Ongoing investments in automation and cold-chain logistics further enhance distribution reliability, throughput, and support for high-growth therapeutic areas.

Still, McKesson faces potential headwinds, including regulatory changes to Medicare payment models, evolving drug pricing frameworks and uncertainty around potential pharmaceutical tariffs. Rising competition in oncology and biopharma services, payer formulary shifts, and specialty supply-chain complexities may also weigh on the company’s performance. Effective integration of recent acquisitions and broader economic pressures on healthcare utilization remain key factors to watch through the rest of the year.

McKesson has raised its fiscal 2026 earnings per share (EPS) guidance to $37.10-$37.90 from $36.90-$37.70, 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 2026 revenues indicates a gain of 14% from the year-ago reported figure, while the same for earnings implies an improvement of 15.1%. It carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price and Consensus: MCK

West Pharmaceutical is well-positioned to maintain its growth momentum through the rest of 2025, supported by strong demand for proprietary products, innovation-driven launches and ongoing capacity expansion. High-value product (HVP) components, such as NovaPure and Daikyo, remain key contributors, benefiting from broad adoption across biologics, vaccines and injectable therapies. Rising demand for self-injection systems and containment solutions, particularly in GLP-1 and oncology pipelines, is expected to sustain order activity.

Operational improvements through advanced automation, expanded molding capacity, and footprint optimization are driving greater efficiency and cost benefits. Strategic partnerships with major pharma and biotech companies are enhancing visibility into future projects, while deeper involvement in early-stage development work positions West Pharmaceutical to secure commercial manufacturing opportunities later in the product lifecycle. Its continued focus on integrated drug delivery solutions, combining containment and delivery technologies, further strengthens its competitive edge.

However, short-term headwinds remain. Customer inventory adjustments may cause near-term order fluctuations, and pricing pressure in lower-margin components could weigh on performance. Macroeconomic factors such as material cost volatility and foreign exchange shifts, as well as regulatory and quality compliance challenges, also present risks. Additionally, normalization in demand for pandemic-related products may temper year-over-year comparisons in certain 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. For the full year, adjusted EPS is anticipated to be in the range of $6.65-$6.85.

The Zacks Consensus Estimate for 2025 revenues indicates year-over-year growth of 5.6% and the same for earnings suggests an improvement of 3.6%. Currently, the company carries a Zacks Rank #2 (Buy).

Price and Consensus: WST

Cardinal Health is expected to maintain its operational momentum through the rest of 2025, driven by steady performance across both its Pharmaceutical and Medical segments. In Pharmaceutical, growth will likely come from continued volume gains with large retail chains, strong specialty distribution, and expanding partnerships with health systems. Specialty therapeutics, particularly in oncology and chronic care, remain key revenue drivers, supported by Cardinal Health’s extensive distribution network and manufacturer service offerings. Rising biosimilar adoption and growing demand for patient support programs further strengthen the segment’s outlook.

The Medical segment continues to benefit from recovering procedural volumes, solid demand for Cardinal Health’s at-Home Solutions, and greater supply-chain stability. Efforts to simplify the product portfolio, modernize manufacturing, and expand automation are boosting efficiency and margins. New product launches in single-use surgical devices and lab testing consumables are also reinforcing its competitive position.

However, Cardinal Health faces several challenges. Competitive pricing pressures, generic deflation, and inflation-related costs for freight and labor could affect margins. Regulatory uncertainty around drug pricing and biosimilar reimbursement, along with consolidation among retail pharmacy customers, may add headwinds. Execution on portfolio and cost transformation initiatives also remains an area to watch in the coming quarters.

CAHexpects adjusted EPS to be in the $9.30-$9.50 range for fiscal 2025. The company expects revenues from its Pharmaceutical segment to grow 11-13% year over year. Revenues from the Medical segment are estimated to grow 2-4%. Revenues from the Other segment are likely to grow 26-28%.

The Zacks Consensus Estimate for fiscal 2026 revenues indicates an improvement of 11.9% from the year-ago reported figure, while the same for earnings implies an improvement of 14.7%. It carries a Zacks Rank #3 (Hold) at present.

Price and Consensus: CAH

Cooper Companies is positioned for stable performance through the remainder of 2025, supported by steady demand across both CooperVision (CVI) and CooperSurgical (CSI). In CVI, growth is expected to continue with the global expansion of daily silicone hydrogel lenses —particularly the clariti and MyDay lines — with MyDay toric and multifocal products driving a favorable sales mix. Specialty lenses such as MiSight for myopia control are gaining traction, supported by broader practitioner training, awareness programs, and growing adoption across international markets, especially in Asia-Pacific.

In CSI, fertility and women’s health products remain key growth drivers, fueled by solid utilization of PARAGARD, surgical devices, and ongoing momentum in fertility solutions. Recent acquisitions in reproductive health are broadening CSI’s integrated portfolio and expanding its customer base. Meanwhile, investments in digital platforms, data-driven marketing, and supply-chain efficiency are helping enhance overall operational performance.

Meanwhile, Cooper Companies faces several near-term challenges. Competitive pricing in contact lenses, potential inventory adjustments by distributors, and macroeconomic pressures in select regions could weigh on results. Regulatory oversight in fertility care, foreign exchange fluctuations, and integration risks tied to recent acquisitions also present uncertainties. Additionally, shifts in consumer spending, particularly in discretionary healthcare categories, may moderate growth in certain markets.

For the full year, COO expects organic revenue of 4-4.5%. For the entire fiscal year, adjusted earnings per share are expected to be in the $4.08-$4.12 range.

For this Pleasanton, CA-based company, the Zacks Consensus Estimate for 2025 revenues indicates a 5% improvement from the prior-year reported figure, while the same for earnings implies an increase of 10.8%. Presently, the company carries a Zacks Rank of 3.

Price and Consensus: COO