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Dentsply Sirona, Acadia Healthcare, and Haemonetics Stocks Trade Down, What You Need To Know

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What Happened?

A number of stocks fell in the afternoon session after worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. 

The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Zooming In On Dentsply Sirona (XRAY)

Dentsply Sirona’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 15 days ago when the stock dropped 3.2% on the news that the U.S. Commerce Department initiated a national security investigation into medical equipment and devices, raising concerns about potential tariffs. 

The probe, conducted under Section 232 of the Trade Expansion Act, examines whether imports of items like syringes, infusion pumps, and surgical instruments pose a national security risk. Such investigations can pave the way for new import duties, creating a significant overhang for the sector. The goal of potential tariffs would be to boost domestic manufacturing by increasing the cost of foreign goods. This development has introduced new uncertainty for the industry, leading to broad-based declines in the stocks of major manufacturers, including Baxter International and GE HealthCare, as investors weigh the potential impact on supply chains and costs.

Dentsply Sirona is down 36.6% since the beginning of the year, and at $11.88 per share, it is trading 52% below its 52-week high of $24.73 from October 2024. Investors who bought $1,000 worth of Dentsply Sirona’s shares 5 years ago would now be looking at an investment worth $258.26.

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