Dental supply stock surges on speculation that RFK's anti-fluoride stance will increase dentist visits.

• On Monday, Henry Schein's stock price increased by more than 4%, potentially achieving their best trading day since July.
• The removal of fluoride in public water advocated by Robert F. Kennedy Jr. can increase demand for companies that produce dental hygiene products, as stated by financial firm Gordon Haskett.

On Monday, the dental care supplier's stock advanced as investors speculated that Robert F. Kennedy Jr., Donald Trump's choice for Health and Human Services secretary, might suggest removing fluoride from the U.S. water supply, which would result in an increase in dental visits.

Henry Schein shares experienced a nearly 5% increase in value, making it the best day since July. Additionally, other dental product manufacturers also saw gains in the session.

Kennedy posted on X before the presidential election this month that a "Trump administration will advise all U.S. water systems to remove fluoride from public water."

The use of fluoride as a cavity-fighting method has been widely accepted, but its insertion into public water has sparked a nationwide debate, leading some local communities to abolish programs that involve it.

Kennedy must gain Senate approval to take the job, but market participants are already focusing on dental hygiene products as potential beneficiaries of his policies. This is because removing fluoride from water would increase demand for tooth cleaning products, as consumers would look for alternatives to fight cavities, according to firm Gordon Haskett.

"According to Don Bilson, Gordon Haskett's head of event-driven research, RFK's appointment to HHS will result in a reduction or elimination of fluoridation in drinking water, which will increase tooth decay and the need for dental visits."

Since the election, the dental equipment industry has struggled, with Henry Schein and other stocks in the sector experiencing a 3.5% decline in November. However, in contrast, the broader market has risen by more than 3% in the same month.

Last week, dental stocks were among the few health-focused equities that were not affected by the announcement of Kennedy's nomination, while pharmaceutical names and processed food stocks were under pressure.

"The decision to select Kennedy caused widespread selling across the healthcare landscape, affecting drugmakers, contract research organizations, health insurers, packaged foods, and advertising."

Bilson stated that regulatory changes related to Kennedy's nomination may take years to be implemented. He also emphasized that drinking water should be primarily regulated by the Environmental Protection Agency rather than Health and Human Services.