Expanding Global Network, Vaccine Sales Support PAHC Stock

Phibro Animal Health‘s (PAHC Quick QuotePAHC – Free Report) diversified product portfolio and wide presence in key growth areas bolster our confidence in the stock. The stock carries a Zacks Rank #2 (Buy).

Factors to Drive Growth for PAHC

Phibro’s existing operations and established sales, marketing and distribution network in over 80 countries provide it ample scope to take advantage of global growth opportunities. 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. During the fiscal first quarter, the company’s operations in countries outside the United States contributed approximately 44.9% to its total revenues.

Phibro is focusing on new developments along with incremental registrations and growing volumes of existing vaccine technologies. The company also makes significant investments to expand vaccine manufacturing capacity at several locations. Recently, Phibro 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.

Phibro’s key animal health products, including medicated feed additives (MFAs) and nutritional specialty products, facilitate the enhancement of animal nutrition. Similarly, the company’s nutritional product offerings, such as OmniGen-AF and Animate, are used increasingly in the global dairy industry. The company also manufactures vaccines, which protect animals from both viral and bacterial disease challenges. Moreover, the company is committed to developing its companion animal business and pipeline. These are key growth areas for Phibro both in the short and medium term, and it has been actively investing in these growth drivers to achieve its targets.

Phibro’s recently completed acquisition of the MFA product portfolio and certain water-soluble products (from Zoetis Inc) has led to the inclusion of a product portfolio with more than 37 product lines sold across approximately 80 countries and six manufacturing sites in the United States, Italy and China.

The stock has surged 92.5% in a year compared with the industry’s 7.3% rise. With the company strategically expanding through innovation and acquisitions, as well as expanding its business footprint, we expect the stock to continue its upward movement in the coming days.

Concerning Factors for PAHC

In the current scenario, Phibro’s business is severely affected by economic sanctions, bans and broader military conflicts, resulting from the ongoing armed conflict between Russia and Ukraine. Other impacts include supply-chain and logistics disruptions, macroeconomic impacts from the exclusion of Russian financial institutions from the global banking system, volatility in foreign exchange rates and interest rates, inflationary pressure on raw materials and energy, as well as heightened cybersecurity threats. Consequently, these macroeconomic factors could reduce Phibro’s profitability and negatively impact its overall financial performance. In the fiscal first quarter of 2025, the cost of goods sold increased 8.1% from the prior-year level.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Veracyte (VCYT Quick QuoteVCYT – Free Report) , ResMed (RMD Quick QuoteRMD – Free Report) and Omnicell (OMCL Quick QuoteOMCL – Free Report) .

Veracyte, carrying a Zacks Rank #1 (Strong Buy) at present, has an estimated earnings growth rate of 65.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 520.58%. Veracyte’s shares have risen 49.2% in the past year compared with the industry’s 5.5% growth.

ResMed, carrying a Zacks Rank #2 at present, has an estimated growth rate of 21.1% for 2025. RMD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.41%. Its shares have risen 34.1% compared with the industry’s 7.7% growth in the past year.

Omnicell, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 72.7% for fourth-quarter 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 121.74%. OMCL’s shares have risen 26.4% against the industry’s 15.7% decline in the past year.