We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Phibro Animal Health Stock Up 87.5% in a Year: What's Driving the Rise?
Read MoreHide Full Article
Phibro Animal Health (PAHC - Free Report) shares have climbed 87.5% in the past year, showcasing impressive momentum. This has outpaced the industry’s 10.4% growth and the S&P 500 Composite’s 13.8% gain.
Sporting a Zacks Rank #1 (Strong Buy) at present, the renowned animal health and mineral nutrition company is gaining from the strength of its diversified portfolio across all three segments. The prospering Vaccine business and strong potential in the extensive overseas market instill optimism in the stock.
Headquartered in New Jersey, Phibro offers a broad range of products for food animals, including poultry, swine, beef, dairy cattle and aquaculture. In addition to animal health and mineral nutrition products, the company manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries. Phibro’s business is currently concentrated in the livestock sector, and it is investing resources to develop products for the companion animal sector.
Key Factors Behind PAHC’s Surge
The rally in the company’s share price can be linked to the robust demand for the company’s animal health products. Phibro is helping meet the growing demand for cost-effective, safe, high-quality animal protein amid the scarcity of natural resources. In the second quarter of fiscal 2025, the Animal Health segment delivered 32.5% sales growth year over year, driven by a strong 47% increase in MFA and other product sales from higher domestic and international demand. Moreover, Phibro’s latest acquisition of Zoetis’ medicated feed additive (MFA) product portfolio and certain water-soluble products adds more than 37 product lines sold across 80 countries, along with six manufacturing sites in the United States, Italy and China.
Image Source: Zacks Investment Research
The division’s Vaccine business drove robust 12% growth, driven by poultry product introductions in Latin America as well as increased demand in both domestic and international regions. Phibro continues to strengthen its vaccine portfolio with innovations, incremental registrations and expanded production capacity. Recently, the company began operations at a new vaccine production facility in Guarulhos, Brazil, that manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture. Additionally, it launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas.
Moreover, Phibro’s existing operations and sales, marketing and distribution network in more than 80 countries provide it with ample scope to take advantage of global growth opportunities. Outside the United States, the company’s global footprint spans key high-growth regions such as Brazil, China, India, Turkey, Australia, Canada and other countries in Africa. International sales accounted for approximately 40.4% of its total revenues in the fiscal second quarter. Investors are also upbeat about the performance of Phibro’s Mineral Nutrition business, which increased 3% due to higher sales volume and price. Meanwhile, strong demand for ingredients used in personal care products is driving the Performance Products segment’s growth.
Concerns for PAHC
Phibro’s business remains vulnerable to macroeconomic volatility, such as the conflict between Russia and Ukraine, supply-chain and logistics disruptions and heightened cybersecurity threats. The strengthening of the U.S. dollar is currently affecting the company’s export market.
A Glance at PAHC’s Estimates
The Zacks Consensus Estimate for Phibro’s fiscal 2025 and 2026 earnings per share (EPS) is expected to increase 62.2% and 8.7% year over year, respectively, to $1.93 and $2.10. In the past 30 days, the Zacks Consensus Estimate for the company's fiscal 2025 EPS has risen 19.1%.
Revenues for fiscal 2025 are projected to grow 25.9% to $1.28 billion, while the same for fiscal 2026 is expected to reach $1.38 billion, implying a 7.7% increase.
Masimo has an earnings yield of 2.5%, well ahead of the industry’s -3.6% yield. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 14.4%. Its shares have surged 35.5% against the industry’s 5.2% decline in the past year.
Boston Scientific, carrying a Zacks Rank #2 (Buy), has an earnings yield of 2.7% compared with the industry’s 1.4%. Shares of the company have rallied 49.9% compared with the industry’s 10.4% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.4%. Shares of the company have rallied 9.6% against the industry’s 2.8% fall. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Phibro Animal Health Stock Up 87.5% in a Year: What's Driving the Rise?
Phibro Animal Health (PAHC - Free Report) shares have climbed 87.5% in the past year, showcasing impressive momentum. This has outpaced the industry’s 10.4% growth and the S&P 500 Composite’s 13.8% gain.
Sporting a Zacks Rank #1 (Strong Buy) at present, the renowned animal health and mineral nutrition company is gaining from the strength of its diversified portfolio across all three segments. The prospering Vaccine business and strong potential in the extensive overseas market instill optimism in the stock.
Headquartered in New Jersey, Phibro offers a broad range of products for food animals, including poultry, swine, beef, dairy cattle and aquaculture. In addition to animal health and mineral nutrition products, the company manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries. Phibro’s business is currently concentrated in the livestock sector, and it is investing resources to develop products for the companion animal sector.
Key Factors Behind PAHC’s Surge
The rally in the company’s share price can be linked to the robust demand for the company’s animal health products. Phibro is helping meet the growing demand for cost-effective, safe, high-quality animal protein amid the scarcity of natural resources. In the second quarter of fiscal 2025, the Animal Health segment delivered 32.5% sales growth year over year, driven by a strong 47% increase in MFA and other product sales from higher domestic and international demand. Moreover, Phibro’s latest acquisition of Zoetis’ medicated feed additive (MFA) product portfolio and certain water-soluble products adds more than 37 product lines sold across 80 countries, along with six manufacturing sites in the United States, Italy and China.
Image Source: Zacks Investment Research
The division’s Vaccine business drove robust 12% growth, driven by poultry product introductions in Latin America as well as increased demand in both domestic and international regions. Phibro continues to strengthen its vaccine portfolio with innovations, incremental registrations and expanded production capacity. Recently, the company began operations at a new vaccine production facility in Guarulhos, Brazil, that manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture. Additionally, it launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas.
Moreover, Phibro’s existing operations and sales, marketing and distribution network in more than 80 countries provide it with ample scope to take advantage of global growth opportunities. Outside the United States, the company’s global footprint spans key high-growth regions such as Brazil, China, India, Turkey, Australia, Canada and other countries in Africa. International sales accounted for approximately 40.4% of its total revenues in the fiscal second quarter. Investors are also upbeat about the performance of Phibro’s Mineral Nutrition business, which increased 3% due to higher sales volume and price. Meanwhile, strong demand for ingredients used in personal care products is driving the Performance Products segment’s growth.
Concerns for PAHC
Phibro’s business remains vulnerable to macroeconomic volatility, such as the conflict between Russia and Ukraine, supply-chain and logistics disruptions and heightened cybersecurity threats. The strengthening of the U.S. dollar is currently affecting the company’s export market.
A Glance at PAHC’s Estimates
The Zacks Consensus Estimate for Phibro’s fiscal 2025 and 2026 earnings per share (EPS) is expected to increase 62.2% and 8.7% year over year, respectively, to $1.93 and $2.10. In the past 30 days, the Zacks Consensus Estimate for the company's fiscal 2025 EPS has risen 19.1%.
Revenues for fiscal 2025 are projected to grow 25.9% to $1.28 billion, while the same for fiscal 2026 is expected to reach $1.38 billion, implying a 7.7% increase.
Other Top MedTech Stocks
Some other top-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , Boston Scientific (BSX - Free Report) and Cardinal Health (CAH - Free Report) .
Masimo has an earnings yield of 2.5%, well ahead of the industry’s -3.6% yield. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 14.4%. Its shares have surged 35.5% against the industry’s 5.2% decline in the past year.
MASI sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Scientific, carrying a Zacks Rank #2 (Buy), has an earnings yield of 2.7% compared with the industry’s 1.4%. Shares of the company have rallied 49.9% compared with the industry’s 10.4% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.4%. Shares of the company have rallied 9.6% against the industry’s 2.8% fall. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.6%.