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Phibro Animal Health Stock Surges 82.1% YTD: What's Fueling It?
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Key Takeaways
PAHC shares surge, driven by Animal Health, Zoetis portfolio and strong overseas demand.
Phibro expands vaccine capacity; Q4 sales rise 21% YoY on poultry growth and strong international demand.
Phibro's global reach spans high-growth livestock markets across South America, Asia, Europe and Africa.
Phibro Animal Health (PAHC - Free Report) shares have surged 82.1% so far this year, showcasing impressive momentum. This has outpaced the industry’s 5.3% growth and the S&P 500 Composite’s 14.2% gain.
Carrying a Zacks Rank #2 (Buy) at present, the renowned animal health and mineral nutrition company is gaining from the strength of its Animal Health portfolio. The thriving vaccine business and expanding opportunities in the markets abroad also bode well for the stock.
New Jersey-based Phibro markets approximately 800 product lines in roughly 90 countries for food and companion animals, including poultry, swine, beef and dairy cattle, aquaculture and dogs. The company also manufactures and markets particular ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries. Phibro’s operations presently center on the livestock sector. PAHC is channeling resources to develop products for the companion animal sector.
What’s Behind PAHC’s Surge?
The rally in the company’s share price can be linked to the strong momentum in its Animal Health business. Key products, including MFAs (medicated feed additives) and nutritional specialty products, facilitate enhanced animal nutrition, while Phibro’s nutritional offerings, such as OmniGen-AF and Animate, continue to gain traction in the global dairy industry. The acquisition of Zoetis’ MFA portfolio and certain water-soluble products added more than 37 established product lines sold across 80 countries, along with six manufacturing sites in the United States, Italy and China. In the fourth quarter of fiscal 2025, sales of MFA and other products jumped 77% year over year owing to incremental revenues from the Zoetis portfolio and strong demand overseas.
Image Source: Zacks Investment Research
In addition, Phibro is heavily investing in expanding vaccine manufacturing capacity at several locations. It recently 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. The company also launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas. Fiscal fourth-quarter vaccine sales increased 21% year over year, primarily driven by the continued growth of poultry products in Latin America and higher international demand.
Outside the United States, Phibro’s global footprint extends to key high-growth regions (countries where the livestock production growth rate is expected to be higher than the average growth rate), including Brazil and other countries in South America, China, India and Southeast Asia, Mexico, Turkey, Australia, Canada, Poland and other Eastern European countries, and South Africa and other countries in Africa.
Moreover, the company has been experiencing recovery within the Mineral Nutrition and Performance Products businesses. Mineral Nutrition net sales continue to be driven by increased demand for copper and trace minerals, while Performance Products benefits from higher average selling prices.
Concerns for PAHC
Phibro’s business continues to be affected by economic sanctions, bans and broader military conflicts resulting from the ongoing armed conflict between Russia and Ukraine. Collectively, these factors could reduce the company’s profitability and negatively impact its overall financial performance.
A Glance at PAHC’s Estimates
The Zacks Consensus Estimate for Phibro’s fiscal 2026 and 2027 earnings per share (EPS) is expected to increase 22.9% and 4.9% year over year, respectively, to $2.57 and $2.69. In the past 30 days, the Zacks Consensus Estimate for the company's fiscal 2025 EPS has risen 11.7%.
Revenues for fiscal 2026 are projected to grow 13.1% to $1.47 billion, while those for fiscal 2027 are expected to reach $1.49 billion, implying a 1.4% increase.
Masimo has an earnings yield of 3.8% compared to the industry’s -4.5% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 13.8%. MASI shares have rallied 5.4% against the industry’s 18.4% drop in the past year.
Boston Scientific, carrying a Zacks Rank #2, has an earnings yield of 3.1% compared with the industry’s 0.5% growth. Shares of the company have risen 18% compared with the industry’s 0.1% growth. BSX’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 8.1%.
Cardinal Health, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.7% growth. Shares of the company have rallied 41.4%, outpacing the industry’s 0.9% growth. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.2%.
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Phibro Animal Health Stock Surges 82.1% YTD: What's Fueling It?
Key Takeaways
Phibro Animal Health (PAHC - Free Report) shares have surged 82.1% so far this year, showcasing impressive momentum. This has outpaced the industry’s 5.3% growth and the S&P 500 Composite’s 14.2% gain.
Carrying a Zacks Rank #2 (Buy) at present, the renowned animal health and mineral nutrition company is gaining from the strength of its Animal Health portfolio. The thriving vaccine business and expanding opportunities in the markets abroad also bode well for the stock.
New Jersey-based Phibro markets approximately 800 product lines in roughly 90 countries for food and companion animals, including poultry, swine, beef and dairy cattle, aquaculture and dogs. The company also manufactures and markets particular ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries. Phibro’s operations presently center on the livestock sector. PAHC is channeling resources to develop products for the companion animal sector.
What’s Behind PAHC’s Surge?
The rally in the company’s share price can be linked to the strong momentum in its Animal Health business. Key products, including MFAs (medicated feed additives) and nutritional specialty products, facilitate enhanced animal nutrition, while Phibro’s nutritional offerings, such as OmniGen-AF and Animate, continue to gain traction in the global dairy industry. The acquisition of Zoetis’ MFA portfolio and certain water-soluble products added more than 37 established product lines sold across 80 countries, along with six manufacturing sites in the United States, Italy and China. In the fourth quarter of fiscal 2025, sales of MFA and other products jumped 77% year over year owing to incremental revenues from the Zoetis portfolio and strong demand overseas.
Image Source: Zacks Investment Research
In addition, Phibro is heavily investing in expanding vaccine manufacturing capacity at several locations. It recently 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. The company also launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas. Fiscal fourth-quarter vaccine sales increased 21% year over year, primarily driven by the continued growth of poultry products in Latin America and higher international demand.
Outside the United States, Phibro’s global footprint extends to key high-growth regions (countries where the livestock production growth rate is expected to be higher than the average growth rate), including Brazil and other countries in South America, China, India and Southeast Asia, Mexico, Turkey, Australia, Canada, Poland and other Eastern European countries, and South Africa and other countries in Africa.
Moreover, the company has been experiencing recovery within the Mineral Nutrition and Performance Products businesses. Mineral Nutrition net sales continue to be driven by increased demand for copper and trace minerals, while Performance Products benefits from higher average selling prices.
Concerns for PAHC
Phibro’s business continues to be affected by economic sanctions, bans and broader military conflicts resulting from the ongoing armed conflict between Russia and Ukraine. Collectively, these factors could reduce the company’s profitability and negatively impact its overall financial performance.
A Glance at PAHC’s Estimates
The Zacks Consensus Estimate for Phibro’s fiscal 2026 and 2027 earnings per share (EPS) is expected to increase 22.9% and 4.9% year over year, respectively, to $2.57 and $2.69. In the past 30 days, the Zacks Consensus Estimate for the company's fiscal 2025 EPS has risen 11.7%.
Revenues for fiscal 2026 are projected to grow 13.1% to $1.47 billion, while those for fiscal 2027 are expected to reach $1.49 billion, implying a 1.4% increase.
Other Key Picks
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 3.8% compared to the industry’s -4.5% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 13.8%. MASI shares have rallied 5.4% against the industry’s 18.4% drop in the past year.
MASI 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, has an earnings yield of 3.1% compared with the industry’s 0.5% growth. Shares of the company have risen 18% compared with the industry’s 0.1% growth. BSX’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 8.1%.
Cardinal Health, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.7% growth. Shares of the company have rallied 41.4%, outpacing the industry’s 0.9% growth. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.2%.