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Phibro (PAHC) Soars 6.8%: Is Further Upside Left in the Stock?

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Phibro Animal Health (PAHC - Free Report) shares rallied 6.8% in the last trading session to close at $29.9. 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 16.3% gain over the past four weeks.

Phibro shares rose after a JPMorgan analyst raised the price target from $35.00 from $25.00 and upgraded the stock to Overweight from Neutral on Monday. The upgrade was driven by Phibro’s continued strong performance and better-than-expected integration of the Zoetis’ MFA business acquisition.

This maker of animal health products and nutritional supplements is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +26.8%. Revenues are expected to be $361.15 million, up 32.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Phibro, the consensus EPS estimate for the quarter has been revised 57.1% 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 #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Phibro belongs to the Zacks Medical - Products industry. Another stock from the same industry, Tilray Brands, Inc. (TLRY - Free Report) , closed the last trading session 6.6% lower at $0.5. Over the past month, TLRY has returned 32.8%.

Tilray Brands' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. Compared to the company's year-ago EPS, this represents a change of +25%. Tilray Brands currently boasts a Zacks Rank of #3 (Hold).


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