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.
Should You Consider Retaining PBH Stock in Your Portfolio Now?
Read MoreHide Full Article
Prestige Consumer Healthcare’s (PBH - Free Report) dedication to brand building is poised to drive growth in the upcoming quarters. The company’s portfolio expansion through strategic acquisitions looks encouraging. Meanwhile, a fierce competitive pressure and solvency issues weigh on Prestige Consumer’s operations.
In the past year, this Zacks Rank #3 (Hold) company’s shares have rallied 19.3% compared with the industry and the S&P 500 composite’s growth of 10.8% and 11.1%, respectively.
The renowned consumer healthcare product company has a market capitalization of $4.17 billion. PBH reported an earnings surprise of 5.17% in the last reported quarter. The company has an earnings yield of 5.4% compared with the industry’s 0.3%.
Let’s delve deeper.
Upsides for PBH Stock
Strength of a Diversified Portfolio: Prestige Consumer Health owns and markets a diverse portfolio of well-recognized consumer brands. The products benefit from robust marketing strategies that are designed to enhance sales growth and long-term profitability across major and core brands. The company’s core brands together generated nearly 58.6% of the total revenues in fiscal 2024.
PBH’s fast-growing gastrointestinal (GI) product category represents nearly one-fifth of North American sales. The portfolio is headlined by three iconic GI brands — Dramamine, Fleet and Gaviscon. The Eye & Ear Care category includes a wide assortment of leading brands like Clear Eyes, TheraTears and Debrox. In the third quarter of fiscal 2025, the company recognized sequential sales growth in Clear Eyes despite supply chain-related limitations within the business. Additionally, Prestige Consumer is experiencing impressive growth in the e-commerce channel, continuing the long-term trend of growing online purchases.
Acquisitions Aid Growth: In the past few years, the company has expanded its brand portfolio both organically and through acquisitions. It acquired TheraTears and four other over-the-counter consumer brands across the VMS and Cough & Cold categories from the 2021 acquisition of Akorn Operating Company LLC. PBH also acquired Hydralyte (an over-the-counter oral rehydration brand in Australia) from the Hydration Pharmaceuticals Trust of Victoria, Australia.
The strong and diverse portfolio of products has provided Prestige Consumer with multiple sources of growth and minimized the impact of any individual category slowdowns. Moreover, this diversity extends beyond just brands to encompass the diversity of channels, geographies, and suppliers, each of which benefits the company’s business during periods of uncertainty and volatility.
Image Source: Zacks Investment Research
Concerns for PBH Stock
Debt Profile: At the end of the fiscal third quarter, Prestige Consumer had a long-term debt of $996 million, while cash and cash equivalents totaled $51 million. Although the company does not have any near-term debt payable, the debt-to-capital ratio stood moderately leveraged at 35.8%, while times interest earned was 6.3. This suggests that the company might face difficulty in paying off its interest obligations.
Currency Fluctuations: The company generally relies on brokers and distributors for the sale of its products in foreign countries, having generated approximately 14.8% of fiscal 2024 revenues from its international business. Hence, fluctuating foreign exchange rates remain a concern, which could result in unfavorable price increases for the company’s products or lead to higher costs for certain products purchased from its foreign third-party manufacturers.
PBH Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for PBH’s fiscal 2025 earnings per share has moved north 0.4% to $4.52.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.13 billion, implying an increase of 0.5% from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Phibro Animal Health (PAHC - Free Report) , Boston Scientific (BSX - Free Report) and Cardinal Health (CAH - Free Report) .
Phibro Animal Health has an estimated fiscal 2025 earnings growth rate of 62.2% compared with the industry’s 17.2%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.06%. The company’s shares have surged 73.5% compared with the industry’s 9.5% growth in the past year.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 2.7% compared with the industry’s 1.5%. Shares of the company have rallied 47.1% compared with the industry’s 9.5% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%.
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 9.5%. Shares of the company have rallied 17.5% against the industry’s 3.2% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.64%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Consider Retaining PBH Stock in Your Portfolio Now?
Prestige Consumer Healthcare’s (PBH - Free Report) dedication to brand building is poised to drive growth in the upcoming quarters. The company’s portfolio expansion through strategic acquisitions looks encouraging. Meanwhile, a fierce competitive pressure and solvency issues weigh on Prestige Consumer’s operations.
In the past year, this Zacks Rank #3 (Hold) company’s shares have rallied 19.3% compared with the industry and the S&P 500 composite’s growth of 10.8% and 11.1%, respectively.
The renowned consumer healthcare product company has a market capitalization of $4.17 billion. PBH reported an earnings surprise of 5.17% in the last reported quarter. The company has an earnings yield of 5.4% compared with the industry’s 0.3%.
Let’s delve deeper.
Upsides for PBH Stock
Strength of a Diversified Portfolio: Prestige Consumer Health owns and markets a diverse portfolio of well-recognized consumer brands. The products benefit from robust marketing strategies that are designed to enhance sales growth and long-term profitability across major and core brands. The company’s core brands together generated nearly 58.6% of the total revenues in fiscal 2024.
PBH’s fast-growing gastrointestinal (GI) product category represents nearly one-fifth of North American sales. The portfolio is headlined by three iconic GI brands — Dramamine, Fleet and Gaviscon. The Eye & Ear Care category includes a wide assortment of leading brands like Clear Eyes, TheraTears and Debrox. In the third quarter of fiscal 2025, the company recognized sequential sales growth in Clear Eyes despite supply chain-related limitations within the business. Additionally, Prestige Consumer is experiencing impressive growth in the e-commerce channel, continuing the long-term trend of growing online purchases.
Acquisitions Aid Growth: In the past few years, the company has expanded its brand portfolio both organically and through acquisitions. It acquired TheraTears and four other over-the-counter consumer brands across the VMS and Cough & Cold categories from the 2021 acquisition of Akorn Operating Company LLC. PBH also acquired Hydralyte (an over-the-counter oral rehydration brand in Australia) from the Hydration Pharmaceuticals Trust of Victoria, Australia.
The strong and diverse portfolio of products has provided Prestige Consumer with multiple sources of growth and minimized the impact of any individual category slowdowns. Moreover, this diversity extends beyond just brands to encompass the diversity of channels, geographies, and suppliers, each of which benefits the company’s business during periods of uncertainty and volatility.
Image Source: Zacks Investment Research
Concerns for PBH Stock
Debt Profile: At the end of the fiscal third quarter, Prestige Consumer had a long-term debt of $996 million, while cash and cash equivalents totaled $51 million. Although the company does not have any near-term debt payable, the debt-to-capital ratio stood moderately leveraged at 35.8%, while times interest earned was 6.3. This suggests that the company might face difficulty in paying off its interest obligations.
Currency Fluctuations: The company generally relies on brokers and distributors for the sale of its products in foreign countries, having generated approximately 14.8% of fiscal 2024 revenues from its international business. Hence, fluctuating foreign exchange rates remain a concern, which could result in unfavorable price increases for the company’s products or lead to higher costs for certain products purchased from its foreign third-party manufacturers.
PBH Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for PBH’s fiscal 2025 earnings per share has moved north 0.4% to $4.52.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.13 billion, implying an increase of 0.5% from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Phibro Animal Health (PAHC - Free Report) , Boston Scientific (BSX - Free Report) and Cardinal Health (CAH - Free Report) .
Phibro Animal Health has an estimated fiscal 2025 earnings growth rate of 62.2% compared with the industry’s 17.2%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.06%. The company’s shares have surged 73.5% compared with the industry’s 9.5% growth in the past year.
PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 2.7% compared with the industry’s 1.5%. Shares of the company have rallied 47.1% compared with the industry’s 9.5% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%.
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 9.5%. Shares of the company have rallied 17.5% against the industry’s 3.2% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.64%.