The Zacks Medical - Dental Supplies industry is facing weakness due to rising U.S. tariffs on imports from China, Europe, and Mexico, which are increasing costs and disrupting supply chains. These tariffs have raised prices for essential dental products like burs, handpieces, CAD/CAM blocks, and implants, affecting manufacturers, distributors, and dental practices. Despite short-term demand slumps in elective procedures and preventive products, long-term growth is expected due to an aging population, technological innovations, and rising awareness of preventive care. Companies such as McKesson, Cardinal Health, West Pharmaceutical Services, and The Cooper Companies are expected to deliver favorable performance amid industry challenges. The industry has underperformed the broader market in the past year, with stocks declining 0.4% versus the S&P 500's 20.5% gain. Forward P/E ratios are at 16.05X, below the sector's 18.4X and S&P 500's 22.7X. Each company faces unique operational and macroeconomic challenges, including pricing pressure, regulatory shifts, and supply chain volatility, though they are supported by strong product demand, innovation, and strategic initiatives.

U.S. equities rose at midday as the Nasdaq and S&P 500 reached record highs, driven by lower-than-expected consumer inflation in July. Gildan Activewear announced a nearly $5 billion bid for Hanesbrands, boosting Hanesbrands' shares. On Holding saw its stock rise after reporting better-than-expected results and strengthening its direct-to-consumer sales outlook. Circle Internet Group's USDC stablecoin experienced a significant increase in circulation, improving its adjusted earnings and revenue. Cardinal Health's shares fell after missing revenue estimates, though it announced a $1.9 billion acquisition of Solaris Health to expand in urology. BigBear.ai's shares dropped following a revenue guidance cut and profit outlook withdrawal due to concerns over government contract changes, particularly from the Army. Celanese shares declined after warning of soft demand for the remainder of the year. Oil and gold futures declined, while the 10-year Treasury yield rose. The U.S. dollar weakened against the euro, pound, and yen, and most major cryptocurrencies saw price increases.

The S&P 500 and Nasdaq reached record closing highs on August 13, 2025, driven by moderate inflation data showing a 0.2% monthly rise in July, slightly below forecasts. This bolstered expectations of a Federal Reserve interest rate cut in September, with rate futures indicating an 88.8% chance of a 25 basis point reduction. Market sentiment improved due to strong tech earnings, easing trade tensions following a U.S.-China trade agreement extension to November 10, and inflows into U.S. stocks reaching their highest level in two years. The Dow Jones rose 1.10%, the S&P 500 gained 1.13%, and the Nasdaq advanced 1.39%. Small-cap and airline stocks performed well, with the Russell 2000 up nearly 3% and airline stocks surging 8.87%. Bank stocks rose as a steepening yield curve supported lending margins. Cardinal Health reported a $1.9 billion sale of its Solaris healthcare management unit, leading to a 7% drop in its share price. The market saw a 4.26-to-1 advance-decline ratio on the NYSE and a 2.69-to-1 ratio on the Nasdaq, with numerous new 52-week highs recorded.

Cardinal Health reported its fourth-quarter 2025 earnings, posting earnings per share of $2.08, which exceeded the forecasted $2.03, but revenue fell short at $60.2 billion compared to the expected $60.92 billion. The company's stock dropped 11.58% in pre-market trading following the announcement. Despite the revenue miss, operating earnings rose 19% to $719 million, and adjusted free cash flow reached $2.5 billion for the full year. The company raised its fiscal 2026 EPS guidance to $9.30–$9.50, with growth expectations of 13–15% and segment-specific growth projections. Strategic acquisitions, including Solaris Health, and product innovations such as the Kendall DL MultiSystem and Fantas HQ platform were highlighted as key drivers of future growth. The company also launched a new consumer health logistics center and continues to expand in specialty and at-home solutions segments.

Cardinal Health has announced the acquisition of Solaris Health for $1.9 billion, aiming to strengthen its urology specialty capabilities through the integration of Solaris Health into The Specialty Alliance. The deal is expected to close by the end of 2025 and will be financed through cash-on-hand and new debt, with plans to pay down the debt within 18 to 24 months. Solaris Health’s CEO, Dr. Gary Kirsh, will transition to a senior advisory role at Cardinal. The acquisition aligns with Cardinal’s strategic focus on specialty growth and is supported by strong financial performance in fiscal year 2025, which showed an 18% revenue increase when excluding the impact of the OptumRx contract expiration.