Phibro Animal Health Corporation PAHC has been gaining investor confidence on stellar results over an extended period. Over the past year, the company’s stock has outperformed its industry. The stock has gained 32.4% compared with the industry’s 21.5% gain.
This developer and marketer of genomic-based clinical tests for cancer diagnosis has a market cap of $1.99 billion.
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for current-year earnings of $1.85 indicates a 6.3% year-over-year rise. Further, our consensus estimate for current-year revenues of $854.6 million reflects a year-over-year improvement of 4.2%.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for now. Let’s find out whether the recent positive trend is a sustainable one.
What’s Boosting the Stock?
Solid Quarterly Performance
Phibro ended fourth-quarter fiscal 2018 on a solid note. The company witnessed considerable improvement across all segments. Moreover, it believes that continuous investments in portfolio enhancement and development of organizational capabilities have started to pay off. The company also seems to be upbeat about strength in the international business within the Animal Health segment.
Animal Health Business Continues to Grow
According to Phibro, its animal health products are excellent in preventing, controlling and treating diseases in animals as well as helping enhance nutrition to improve health and performance. This enables the company’s customers to efficiently produce high-quality, wholesome animal protein products for human consumption.
We are encouraged to note that, Phibro as a leading provider of Medicated Feed Additives (MFA) products, has the potential to best capture the huge and growing animal health market worldwide.
Net sales at the Animal Health segment increased 7% in the fiscal fourth quarter on volume increase at Nutritional specialty and Vaccine product groups within the segment.
In fact, Animal Health has been the key contributing business, delivering positive growth on a year-over-year basis.
Impressive Emerging Market Prospects
Phibro’s existing operations and established sales, marketing and distribution network in over 65 countries provides it ample scope for global growth.
Outside the United States, Phibro’s 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 Asia Pacific, Russia, Mexico, Turkey, Australia, Canada and South Africa along with a few countries in Africa.
Want More From the MedTech Space?
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation ITGR, Intuitive Surgical ISRG and Masimo Corporation MASI.
Integer Holdings’ expected long-term earnings growth rate is 15%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock carries a Zacks Rank #1.
Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2.
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