Phibro Animal Health Stock Climbs 90.9% in a Year: What's Driving It?

Phibro Animal Health PAHC shares have surged 90.9% in the past year, demonstrating impressive momentum. The performance has outpaced the industry’s 5.4% decline and the S&P 500 composite’s 19.6% gain.

Sporting a Zacks Rank #1 (Strong Buy) at present, the renowned animal health and mineral nutrition company is gaining from the ongoing momentum of its Animal Health portfolio. The company’s vaccine business continues to prosper, while its growing presence in the emerging markets bodes well for the stock.  

New Jersey-based Phibro markets approximately 800 product lines across roughly 90 countries for food and companion animals, including poultry, swine, beef and dairy cattle, aquaculture and dogs. The company also manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries. Phibro’s operations presently center on the livestock sector. Additionally, it is investing in developing products for the companion animal sector.

What’s Behind PAHC’s Surge?

The rally in the company’s share price can be linked to the sustained traction in the Vaccine business. In the first quarter of fiscal 2026, net sales of vaccines increased 25% year over year, primarily driven by continued growth of poultry products in Latin America and higher international demand. 

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. The company also launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas. Management highlighted vaccines as a key growth driver heading into fiscal 2026, supported by expanding capacity and sustained global demand.

Additionally, Phibro’s established sales, marketing and distribution network in approximately 90 countries provides it with ample scope to take advantage of global growth opportunities. 

Outside the United States, Phibro’s global footprint extends to key high-growth regions, 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. In the first quarter of fiscal 2026, net sales in Europe, the Middle East and Africa increased 44.4%, while Asia Pacific sales jumped 101.1%. 

Meanwhile, Phibro’s solid financial health is another plus. As of the end of the first quarter of fiscal 2026, Phibro’s total cash and short-term investments were $85.3 million. The company has pretty good solvency reflected through its low short-term-payable debt of $18 million on its balance sheet. 

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Concern for PAHC

Phibro conducts operations globally, which entails transactions in a variety of currencies. The company is exposed to changes in the cost of goods sold resulting from currency movements and may not be able to adjust its selling prices to offset these impacts. Foreign currency losses, net for the three months ended Sept. 30, 2025, were $2.9 million compared with a loss of $0.4 million in the year-ago period.

A Glance at PAHC’s Estimates

The Zacks Consensus Estimate for Phibro’s fiscal 2026 and 2027 earnings per share (EPS) is expected to increase 32.1% and 6.3%, respectively, year over year to $2.76 and $2.94. In the past 30 days, the Zacks Consensus Estimate for the company's fiscal 2026 EPS has remained unchanged. 

Revenues for fiscal 2026 are projected to grow 13.1% to $1.47 billion, while those for fiscal 2027 are expected to reach $1.51 billion, implying a 2.9% increase.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Boston Scientific BSX, Charles River Laboratories International CRL and Prestige Consumer PBH.

BSX has an earnings yield of 3.7% compared with the industry’s 2.8% yield. Shares of the company have surged 92.1% over the past year against the industry’s 3.8% decline. BSX’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 7.4%.

BSX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Charles River Laboratories, currently carrying a Zacks Rank #2, has an earnings yield of 5% compared with the industry’s 4.1% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 12.4%. CRL shares have surged 14.7% compared with the industry’s 6.8% growth over the past year.

Prestige Consumer, currently carrying a Zacks Rank #2, has an earnings yield of 7% compared with the industry’s 2.8% yield. Shares of the company have jumped 13.9% compared with the industry’s 5.2% growth. PBH’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 2.8%. 

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

Zacks Investment Research