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.
Is it Apt to Retain Alcon Stock in Your Portfolio for Now?
Read MoreHide Full Article
Key Takeaways
Alcon's Vision Care unit grew 3% in Q1 2025, driven by contact lens innovation and pricing gains.
Alcon might face $80M in added costs from tariffs and pressure from rivals in the competitive eye care space.
New launches like SYSTANE PRO PF and Voyager DSLT support ALC's growth and R&D push.
Alcon’s (ALC - Free Report) Vision Care business continues to gain from its diverse portfolio of contact lenses and ocular health products. Additionally, the introduction of new products is poised to help it grow in the upcoming quarters. Meanwhile, adverse macroeconomic conditions and intense competition may harm the company’s operations.
In the past six months, this Zacks Rank #3 (Hold) stock has rallied 6.7% against the industry’s 8.4% decline. The S&P 500 composite has risen 5.1% in the same time frame.
The renowned pharmaceutical and medical device manufacturer has a market capitalization of $43.49 billion. ALC’s earnings surpassed estimates in three of the trailing four quarters and matched in one, delivering an average surprise of 2.8%.
Let’s delve deeper.
Upsides for ALC
Vision Care Returns to Growth: Within Vision Care, Alcon is experiencing solid growth, driven by strong sales of its contact lenses and ocular health products. In contact lenses, the company is investing in fast-growing market segments where it has significant share opportunities. Vision Care closed the first quarter of 2025 with sales up 3% year over year. Sales of contact lenses were up 4%, primarily due to product innovation as well as price increases. The company continues to experience share gains, driven by product innovations, including the PRECISION1 and TOTAL30 families, as well as DAILIES TOTAL1 for astigmatism. Meanwhile, ocular health continues to deliver strong performance with its portfolio of eye drops, including strength in the SYSTANE family of artificial tears. In the first quarter, sales increased 2% year over year, with increased pricing contributing to the growth.
New Products to Drive Growth: ALC’s continued investment in research and development (R&D) fuels the innovation engine and expands its capabilities. In the first quarter of 2025, R&D spending increased 11.6% year over year.
Within Vision Care, the company launched SYSTANE PRO Preservative-Free (PF) over-the-counter eye drops in the United States, with plans for a broader rollout in 2026. Alcon also made the U.S. debut of Voyager DSLT, a new first-line laser treatment for glaucoma. In April, the company also launched the UNITY Vitreoretinal Cataract System (VCS), a combined console for both vitreoretinal and cataract surgery, and Unity CS, a standalone cataract system (CS).
Downsides for Alcon
Persistent Macroeconomic Pressure: Alcon’s operations are exposed to shifting economic and financial environments in many countries. Ongoing conflicts in regions like the Middle East, along with unpredictable political and social conditions, particularly in emerging markets, could disrupt the global supply chain and increase the cost of international transactions. Moreover, the current trade environment is extremely volatile, with the imposition of trade tariffs, sanctions or other restrictions in effect. ALC anticipates the current tariffs to increase the cost of sales by approximately $80 million for the full year.
Image Source: Zacks Investment Research
Tough Competitive Landscape: The ophthalmology industry is highly competitive, and Alcon faces intense competition in both surgical and vision care businesses. The competitors range from large manufacturers with multiple business lines to small manufacturers that offer a limited range of specialized products. Moreover, at times, pharmaceutical companies offer alternative medical therapies that can potentially disrupt core elements of their business. If Alcon is unable to keep pace with innovation, its market position could be affected.
ALC Stock Estimate Trend
The Zacks Consensus Estimate for 2025 earnings per share has moved south 1% to $3.11 in the past 30 days.
The Zacks Consensus Estimate for 2025 revenues is pegged at $10.44 billion, suggesting a 6.1% rise from the year-ago reported number.
Align Technology has an estimated long-term earnings growth rate of 11.2% compared with the industry’s 9.9% rise. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Its shares have lost 27.7% compared with the industry’s 3.3% decline in the past year.
Hims & Hers Health, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 1.3% against the industry’s -10.1%. Shares of the company have surged 129.7% compared with the industry’s 35.9% gain. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched on one occasion and missed on another, the average surprise being 2.8%.
Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry’s 3.8%. Shares of the company have rallied 25.9% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is it Apt to Retain Alcon Stock in Your Portfolio for Now?
Key Takeaways
Alcon’s (ALC - Free Report) Vision Care business continues to gain from its diverse portfolio of contact lenses and ocular health products. Additionally, the introduction of new products is poised to help it grow in the upcoming quarters. Meanwhile, adverse macroeconomic conditions and intense competition may harm the company’s operations.
In the past six months, this Zacks Rank #3 (Hold) stock has rallied 6.7% against the industry’s 8.4% decline. The S&P 500 composite has risen 5.1% in the same time frame.
The renowned pharmaceutical and medical device manufacturer has a market capitalization of $43.49 billion. ALC’s earnings surpassed estimates in three of the trailing four quarters and matched in one, delivering an average surprise of 2.8%.
Let’s delve deeper.
Upsides for ALC
Vision Care Returns to Growth: Within Vision Care, Alcon is experiencing solid growth, driven by strong sales of its contact lenses and ocular health products. In contact lenses, the company is investing in fast-growing market segments where it has significant share opportunities. Vision Care closed the first quarter of 2025 with sales up 3% year over year. Sales of contact lenses were up 4%, primarily due to product innovation as well as price increases. The company continues to experience share gains, driven by product innovations, including the PRECISION1 and TOTAL30 families, as well as DAILIES TOTAL1 for astigmatism. Meanwhile, ocular health continues to deliver strong performance with its portfolio of eye drops, including strength in the SYSTANE family of artificial tears. In the first quarter, sales increased 2% year over year, with increased pricing contributing to the growth.
New Products to Drive Growth: ALC’s continued investment in research and development (R&D) fuels the innovation engine and expands its capabilities. In the first quarter of 2025, R&D spending increased 11.6% year over year.
Within Vision Care, the company launched SYSTANE PRO Preservative-Free (PF) over-the-counter eye drops in the United States, with plans for a broader rollout in 2026. Alcon also made the U.S. debut of Voyager DSLT, a new first-line laser treatment for glaucoma. In April, the company also launched the UNITY Vitreoretinal Cataract System (VCS), a combined console for both vitreoretinal and cataract surgery, and Unity CS, a standalone cataract system (CS).
Downsides for Alcon
Persistent Macroeconomic Pressure: Alcon’s operations are exposed to shifting economic and financial environments in many countries. Ongoing conflicts in regions like the Middle East, along with unpredictable political and social conditions, particularly in emerging markets, could disrupt the global supply chain and increase the cost of international transactions. Moreover, the current trade environment is extremely volatile, with the imposition of trade tariffs, sanctions or other restrictions in effect. ALC anticipates the current tariffs to increase the cost of sales by approximately $80 million for the full year.
Image Source: Zacks Investment Research
Tough Competitive Landscape: The ophthalmology industry is highly competitive, and Alcon faces intense competition in both surgical and vision care businesses. The competitors range from large manufacturers with multiple business lines to small manufacturers that offer a limited range of specialized products. Moreover, at times, pharmaceutical companies offer alternative medical therapies that can potentially disrupt core elements of their business. If Alcon is unable to keep pace with innovation, its market position could be affected.
ALC Stock Estimate Trend
The Zacks Consensus Estimate for 2025 earnings per share has moved south 1% to $3.11 in the past 30 days.
The Zacks Consensus Estimate for 2025 revenues is pegged at $10.44 billion, suggesting a 6.1% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are Align Technology (ALGN - Free Report) , Hims & Hers Health (HIMS - Free Report) and Cencora (COR - Free Report) .
Align Technology has an estimated long-term earnings growth rate of 11.2% compared with the industry’s 9.9% rise. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Its shares have lost 27.7% compared with the industry’s 3.3% decline in the past year.
ALGN sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hims & Hers Health, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 1.3% against the industry’s -10.1%. Shares of the company have surged 129.7% compared with the industry’s 35.9% gain. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched on one occasion and missed on another, the average surprise being 2.8%.
Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry’s 3.8%. Shares of the company have rallied 25.9% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.