Here's Heartland Value Plus Fund's Views on Prestige Consumer Healthcare (PBH)

Heartland Advisors, an investment management company, released its “Heartland Value Plus Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter proved to be robust for small caps, signaling improved demand dynamics. The Russell 2000® Index was up 12.39% in the quarter, outperforming the S&P 500 Index, which rose 8.12%. The fund returned 8.51% in the third quarter compared to a 12.60% gain for the Russell 2000® Value Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Heartland Value Plus Fund highlighted stocks such as Prestige Consumer Healthcare Inc. (NYSE:PBH). Headquartered in Tarrytown, New York, Prestige Consumer Healthcare Inc. (NYSE:PBH) develops, manufactures, markets, distributes, and sells pharmaceutical drugs and consumer products. The one-month return of Prestige Consumer Healthcare Inc. (NYSE:PBH) was -3.13%, and its shares lost 12.96% of their value over the last 52 weeks. On October 10, 2025, Prestige Consumer Healthcare Inc. (NYSE:PBH) stock closed at $61.00 per share, with a market capitalization of $3.002 billion.

Heartland Value Plus Fund stated the following regarding Prestige Consumer Healthcare Inc. (NYSE:PBH) in its third quarter 2025 investor letter:

"Prestige Consumer Healthcare Inc. (NYSE:PBH) — the company behind familiar over-the-counter medical products such as Dramamine, Luden’s cough drops, and Clear Eyes eye drops — was the biggest detractor to our Strategy’s performance during the quarter. That’s in part because PBH missed earnings forecasts and took down its full fiscal year EPS estimates due to supply chain issues related to its eye care business.

Its core supplier was not able to ship enough products to meet demand for PBH’s Clear Eyes business. The company took action to fix this supply chain issue, opting to acquire its eye care supplier for $100 million. This former supplier will now be 100% focused on producing for PBH after being brought in-house. We expect PBH’s FY 2027 earnings to bounce back nicely as the core business is operating well and expect a rebound in PBH’s profitable eye care business as customers re-stock inventory. At its price of $63 at the end of the third quarter, Prestige shares were trading at 13.8 times 2027 earnings. But we expect multiple expansion, as the company earnings are set to accelerate after addressing its supply chain issues."

Prestige Consumer Healthcare Inc. (NYSE:PBH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 19 hedge fund portfolios held Prestige Consumer Healthcare Inc. (NYSE:PBH) at the end of the second quarter, compared to 23 in the previous quarter. In the fiscal first quarter of 2026, Prestige Consumer Healthcare Inc. (NYSE:PBH) reported revenue of $249.5 million compared to $267.1 million in the prior year. While we acknowledge the potential of Prestige Consumer Healthcare Inc. (NYSE:PBH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Prestige Consumer Healthcare Inc. (NYSE:PBH) and shared the list of most oversold healthcare stocks so far in 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.