Is This the Right Time to Add PBH Stock to Your Portfolio?

Prestige Consumer Healthcare PBH continues to experience robust momentum in the e-commerce channel due to its long-term investments and brand-specific digital strategies. Over the years, it has expanded its brand portfolio both organically and through acquisitions. Also, a stable solvency looks encouraging. Meanwhile, a dull macro-economic scenario poses risks for Prestige Consumer’s operations and profitability. 

In the past year, this Zacks Rank #2 (Buy) stock has declined 9.1% against the industry’s 1.4% growth and the S&P 500 composite’s 18.7% increase.

The renowned consumer healthcare product company has a market capitalization of $2.97 billion. Its earnings yield of 7.3% is well ahead of the industry’s 0.2% yield. Furthermore, PBH surpassed earnings estimates in three of the trailing four quarters and missed the same once, delivering an average surprise of 2.8%.

Let’s delve deeper.

Upsides for PBH Stock

Acquisitions Aid Growth: Over the years, Prestige Consumer has expanded its brand portfolio both organically and through acquisitions. In fiscal first-quarter 2026, the company announced an agreement to acquire Pillar5 Pharma Inc., a leading sterile ophthalmic manufacturer and primary supplier of Clear Eyes, to secure near-term supply and expand long-term production capacity in the eye care category. 

The transaction is expected to be closed in the third quarter of fiscal 2026 with minimal ongoing CapEx requirements. Having a strong and diverse portfolio of products has provided Prestige Consumer with multiple sources of growth and minimized the impact of any individual category slowdown. 

E-Commerce Strength: Prestige Consumer continues to experience robust momentum in the e-commerce channel, a result of its long-term investments and brand-specific digital strategies. In the second quarter of fiscal 2026, the company reported double-digit consumption growth in the e-commerce channels on a year-over-year basis, continuing the long-term trend of higher online purchasing. E-commerce represented a high-teens percentage of total sales in fiscal 2025, up from approximately 15% last year.

Brand-specific digital strategies like the Stye website refresh and engaging content have driven consumer education, retention and conversion. While growth remains primarily U.S.-centric, Prestige Consumer is working with international partners to build out digital channels abroad. The company’s consistent profitability across all channels and ongoing investment in digital marketing position it for sustained success in the evolving online healthcare space.

Stable Solvency: At the end of the second quarter of fiscal 2026, the company did not report any short-term debt, while cash and cash equivalents were $119 million. It shows the company’s stable solvency point. 

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Concern For PBH

Cost Woes: Economic conditions in both the United States and globally remain volatile due to persistent inflationary pressures, rising interest rates and ongoing geopolitical uncertainty. Prestige Consumer continues to face cost headwinds, most notably from supply-chain disruptions and new tariff-related expenses. For fiscal 2026, the company anticipates approximately $5 million in tariff costs. However, the company is proactively implementing cost-saving initiatives and tactical pricing strategies to help offset these effects. 

PBH Stock Estimate Trend

In the past 30 days, the Zacks Consensus Estimate for PBH’s fiscal 2026 earnings per share has remained unchanged at $4.755.

The Zacks Consensus Estimate for the company’s fiscal 2026 revenues is pegged at $1.11 billion, suggesting a decrease of 2.8% from the year-ago reported number.

Other Key Picks

Some other top-ranked stocks in the broader medical space are BrightSpring Health Services BTSG, lllumina ILMN and Insulet PODD.

BrightSpring Health Services has an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 93.9% against the industry’s 0.1% decline over the past year.

BTSG sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina, currently sporting a Zacks Rank #1, has an earnings yield of 3.7% compared to the industry’s -7.9% yield. Shares of the company have lost 10.8% over the past year against the industry’s 9.9% growth. ILMN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.7%.

Insulet, currently carrying a Zacks Rank #2, has an earnings yield of 3.9% against the industry’s -0.9% yield. Shares of the company have lost 7.8% compared with the industry’s 2.6% decline. PODD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.8%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research