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PAHC Stock Up 76.4% in a Year: What's Driving the Rally?
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Key Takeaways
Phibro shares jumped 76.4% in a year, beating industry and S&P 500 growth.
PAHC's revenue gains came from Mineral Nutrition and Performance Products.
PAHC's international markets drove 40% of sales, boosting growth momentum.
Phibro Animal Health (PAHC - Free Report) shares climbed 76.4% in a year, showcasing impressive momentum. The stock has outpaced the industry’s 4.9% growth and the S&P 500 Composite’s 16% gain.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.
New Jersey-based 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
Phibro's share price is trending upward, prompted by strong sales recovery within the Mineral Nutrition and Performance Product arms. In line with this, the Mineral Nutrition business grew 4% year over year during the fiscal third quarter. Meanwhile, sales of Performance Products during the quarter also increased 28% year over year, owing to the rising demand for personal care product ingredients. Also, the expanding Animal Health product portfolio, post the recent acquisition of the medicated feed additive product portfolio and certain water-soluble products from Zoetis Inc., is encouraging.
Investors expressed optimism about Phibro’s global footprint that extends to key high-growth regions, including Brazil and other countries in South America, China, India and Southeast Asia, among others. During the fiscal third quarter, the company’s operations in countries outside the United States contributed approximately 40% to its total revenues.
In terms of solvency, the company is in a good position. This is evident from its low short-term-payable debt of $16 million on its balance sheet, which is much less than the total cash and short-term investments of $70.4 million. Additionally, Phibro reported a fiscal third-quarter operating profit of $33.4 million, which increased 67.8% year over year, with the operating margin expanding 204 bps. These factors have positively impacted the stock, contributing to its rise.
Image Source: Zacks Investment Research
Concerns for PAHC
Phibro’s business remains vulnerable to macroeconomic volatility, including 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 Consensus Estimates
Phibro’s fiscal 2025 and 2026 earnings per share (EPS) are expected to increase 71.4% and 12.7% to $2.04 and $2.30, respectively, year over year. In the past 30 days, the Zacks Consensus Estimate for the company's fiscal 2025 EPS has remained unchanged at $2.04.
Revenues for fiscal 2025 are projected to grow 25.7% to $1.28 billion, while the same for fiscal 2026 is expected to reach $1.41 billion, implying a 10.1% increase.
Estimates for Envista’s 2025 EPS have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield.
Boston Scientific, currently carrying a Zacks Rank #2, has an earnings yield of 2.9% against the industry’s -0.8%. BSX shares have rallied 31.3% in the past year. In the last reported quarter, it posted an earnings surprise of 4.2%.
IDEXX, carrying a Zacks Rank #2 at present, has an earnings yield of 2% against the industry’s -4.6%. Shares of the company have jumped 29.1% in the past year against the industry’s 14% decline. In the last reported quarter, it delivered an earnings surprise of 9.7%.
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PAHC Stock Up 76.4% in a Year: What's Driving the Rally?
Key Takeaways
Phibro Animal Health (PAHC - Free Report) shares climbed 76.4% in a year, showcasing impressive momentum. The stock has outpaced the industry’s 4.9% growth and the S&P 500 Composite’s 16% gain.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.
New Jersey-based 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
Phibro's share price is trending upward, prompted by strong sales recovery within the Mineral Nutrition and Performance Product arms. In line with this, the Mineral Nutrition business grew 4% year over year during the fiscal third quarter. Meanwhile, sales of Performance Products during the quarter also increased 28% year over year, owing to the rising demand for personal care product ingredients. Also, the expanding Animal Health product portfolio, post the recent acquisition of the medicated feed additive product portfolio and certain water-soluble products from Zoetis Inc., is encouraging.
Investors expressed optimism about Phibro’s global footprint that extends to key high-growth regions, including Brazil and other countries in South America, China, India and Southeast Asia, among others. During the fiscal third quarter, the company’s operations in countries outside the United States contributed approximately 40% to its total revenues.
In terms of solvency, the company is in a good position. This is evident from its low short-term-payable debt of $16 million on its balance sheet, which is much less than the total cash and short-term investments of $70.4 million. Additionally, Phibro reported a fiscal third-quarter operating profit of $33.4 million, which increased 67.8% year over year, with the operating margin expanding 204 bps. These factors have positively impacted the stock, contributing to its rise.
Image Source: Zacks Investment Research
Concerns for PAHC
Phibro’s business remains vulnerable to macroeconomic volatility, including 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 Consensus Estimates
Phibro’s fiscal 2025 and 2026 earnings per share (EPS) are expected to increase 71.4% and 12.7% to $2.04 and $2.30, respectively, year over year. In the past 30 days, the Zacks Consensus Estimate for the company's fiscal 2025 EPS has remained unchanged at $2.04.
Revenues for fiscal 2025 are projected to grow 25.7% to $1.28 billion, while the same for fiscal 2026 is expected to reach $1.41 billion, implying a 10.1% increase.
Other Top MedTech Stocks
Some other top-ranked stocks in the broader medical space are Envista (NVST - Free Report) , Boston Scientific (BSX - Free Report) and IDEXX Laboratories (IDXX - Free Report) .
Estimates for Envista’s 2025 EPS have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield.
NVST 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, currently carrying a Zacks Rank #2, has an earnings yield of 2.9% against the industry’s -0.8%. BSX shares have rallied 31.3% in the past year. In the last reported quarter, it posted an earnings surprise of 4.2%.
IDEXX, carrying a Zacks Rank #2 at present, has an earnings yield of 2% against the industry’s -4.6%. Shares of the company have jumped 29.1% in the past year against the industry’s 14% decline. In the last reported quarter, it delivered an earnings surprise of 9.7%.