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Phibro (PAHC) Moves 31.8% Higher: Will This Strength Last?

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Phibro Animal Health (PAHC - Free Report) shares rallied 31.8% in the last trading session to close at $16.78. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.6% loss over the past four weeks.

Phibro scored a strong price increase, on investors’ optimism driven by the recent announcement that the company will acquire Zoetis’ medicated feed additive (MFA) product portfolio, certain water-soluble products and related assets for $350 million. The transaction is expected to be complete in the second half of calendar year 2024, subject to customary closing adjustments.

This maker of animal health products and nutritional supplements is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $251.82 million, up 2.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Phibro, the consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PAHC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Phibro is a member of the Zacks Medical - Products industry. One other stock in the same industry, Quipt Home Medical Corp. (QIPT - Free Report) , finished the last trading session 1.1% lower at $3.62. QIPT has returned -16.3% over the past month.

For Quipt Home Medical, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. This represents a change of +150% from what the company reported a year ago. Quipt Home Medical currently has a Zacks Rank of #3 (Hold).


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