Robert F. Kennedy Jr. attends the campaign event of Republican presidential candidate and former U.S. President Donald Trump in Milwaukee, Wisconsin, the United States, on November 1, 2024.
Joel Angel Juarez | Reuters
Dental Care Provider Henry Schein Stocks rose on Monday as investors bet that President-elect Donald Trump’s health and human services secretary, Robert F. Kennedy Jr., may recommend removing fluoride from the U.S. water supply, a move that would lead to a surge in dental visits.
Henry Schein shares rose nearly 5%, on track for their best day since July. Dental product manufacturers peers Dentsply Sirona and envista It was also slightly higher during the session.
Monday’s move comes as investors brace for public health changes under a second Trump administration. Kennedy Posted on X Ahead of this month’s presidential election, “the Trump White House will recommend that all U.S. water systems remove fluoride from public water.”
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Fluoride has long been proven to be an effective way to fight tooth decay. But this mineral finds itself at the center of a problem National struggle This has led some local communities to end plans centered on integrating them into public water supplies.
While Kennedy will need Senate approval to take over, market participants have focused on a group of stocks that make dental hygiene products as potential beneficiaries of his policies. Gordon Haskett says this is because removing fluoride from water would actually create higher demand in the tooth cleaning industry as consumers look elsewhere to fight tooth decay.
Henry Schein Inc., pictured in Melville, New York, is building a distributor of health care products and services with operations in 32 countries.
Bruce Bennett | Getty Images
“The idea is that RFK will bring a voice to HHS that supports reducing or eliminating added fluoride in drinking water,” Don Bilson, director of event-driven research at Gordon Haskett, said in a statement. inform the client in this report. “This in turn can lead to accelerated tooth decay and more dental visits.”
With that in mind, Henry Schein and other stocks in the space are providing a bright spot for an industry that has been struggling since the election. this Healthcare Select Sector SPDR Fund (XLV) Shares fell about 3.5% in November and were expected to post a three-month loss for the first time since last year. In contrast, broad S&P 500 Index It’s up more than 3% this month.
Gordon Haskett’s Bilson also noted that dental stocks were among the few health stocks that “spurred the damage” as investors reacted to the announcement of Kennedy’s nomination last week. Pharmaceutical companies are under pressure given Kennedy’s reputation as a vaccine skeptic, while processed food stocks have been hammered as traders prepare to step up scrutiny of so-called junk food.
“This caused a broad sell-off across the entire health care sector,” Bilson said of the decision to select Kennedy. “Drug manufacturers, contract research organizations and health insurance companies all felt the earthquake. The damage didn’t stop there; It’s spreading to packaged foods and advertising.”
While markets appear to be reacting to Kennedy’s nomination, Bilson said it could take years for regulatory changes to take effect. He also noted that drinking water should fall more under the EPA than the Department of Health and Human Services.
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