Phibro Animal Health PAHC shares soared 10.2% in the last trading session to close at $20.94. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1% gain over the past four weeks.
Phibro scored a strong price increase, on investors’ optimism driven by its impending fiscal fourth-quarter 2024 financial results, which is slated to be released on Aug 28 post the closing bell. The Zacks Consensus Estimate for the fourth quarter revenue suggests a growth of 2.9% year over year. In the fiscal third quarter, the company delivered a robust 26% growth in the vaccine business and a 16% growth in its MFAs and other business within the Animal Health segment.
This maker of animal health products and nutritional supplements is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -10.5%. Revenues are expected to be $262.44 million, up 2.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Phibro, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PAHC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Phibro is part of the Zacks Medical - Products industry. High Tide Inc. HITI, another stock in the same industry, closed the last trading session 2.1% higher at $1.96. HITI has returned 3.8% in the past month.
High Tide's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. Compared to the company's year-ago EPS, this represents a change of +33.3%. High Tide currently boasts a Zacks Rank of #3 (Hold).
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