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Here's Why Phibro Animal Health Is Worth Buying Right Now

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Phibro Animal Health Corporation (PAHC - Free Report) , headquartered in New Jersey, is a leading global diversified animal health and mineral nutrition company. It has rallied 24.2% over the past three months, ahead of the S&P 500’s mere 2.6% gain. The stock has a market cap of $1.4 billion.

Also over this period, the company’s share price has outperformed the Zacks categorized Medical - Products sub-industry’s gain of 6.1%. With solid growth prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at present.

Phibro’s Animal Health segment continues to be the key contributing business. It currently provides Medicated Feed Additives (MFA) products with the potential to capture a large share of the huge and growing global animal health market. Management believes that the company is well-positioned in the fastest growing food segment of the animal health market with a diversified product portfolio.

Outside the U.S., Phibro’s global footprint extends to Brazil and other countries in South America, China, India and Asia Pacific, Russia and Africa. The company has continued to invest in the Far East Asia where the poultry and dairy industries are expected to grow exponentially.

Currently, the company is expanding the dairy business in the markets of Australia, Brazil and Mexico. We believe that despite the turmoil in the economies of Russia, Greece, Brazil and China, Phibro has performed quite well and has the potential to maintain that healthy momentum.

Meanwhile, the company is progressing well with vaccine business. In the last reported first quarter of 2017, sales from vaccines increased 30%, principally on volume growth of the company’s products for poultry and swine industries.

Earlier, Phibro had become the exclusive distributor of MJ Biologics, Inc. (MJB) that works on research and development of animal health products. This represents the company’s foray into the swine vaccine market. Both firms are working on developing certain animal vaccines. So far, the collaboration has helped expand Phibro’s U.S. swine product offering to include specialized vaccines.

Key Picks

Other top-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has roughly added 30.9% over the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 88%.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has approximately added 20% over the last three months.

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