Market Shift: Dental Care Stocks Soar on Speculation of Fluoride Removal
Investors are betting big on dental care suppliers, driving shares of Henry Schein up over 8% on Monday, as speculation grows that Robert F. Kennedy Jr., President-elect Donald Trump’s pick for Health and Human Services secretary, may recommend removing fluoride from the U.S. water system.
A Boom in Dental Visits Ahead?
If Kennedy’s proposal comes to fruition, it could lead to a surge in dental visits as consumers seek alternative ways to prevent cavities. This, in turn, would boost demand for dental hygiene products, making companies like Henry Schein, Dentsply Sirona, and Envista potential winners.
Fluoride: A Controversial Mineral
Fluoride has long been recognized as an effective method for fighting cavities, but it has also been at the center of a nationwide debate. Some local communities have already opted to end programs that add fluoride to public water, and Kennedy’s stance could accelerate this trend.
Market Reaction
Gordon Haskett’s head of event-driven research, Don Bilson, notes that removing fluoride from water would lead to an acceleration of tooth decay and more dental visits. This sentiment is reflected in the market’s reaction, with Henry Schein shares jumping in afternoon trading following a Reuters report that activist investor Ananym Capital is calling for changes at the company.
A Bright Spot in a Struggling Sector
Dental care stocks offer a rare bright spot within a healthcare sector that has largely struggled since the election. The Health Care Select Sector SPDR Fund (XLV) has tumbled around 3.5% in November, putting it on track for its first three-month losing streak since last year.
Regulatory Changes Ahead
While the market is already reacting to Kennedy’s nomination, regulatory changes would likely take years to come into effect. Additionally, drinking water falls more under the purview of the Environmental Protection Agency than Health and Human Services. Nonetheless, investors are betting on a potential shift in the dental care landscape.
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