Prestige Consumer Gains 35.7% in a Year: What's Driving the Stock?

Prestige Consumer PBH has witnessed strong momentum in the past year. Shares of the company have risen 35.7% compared with 7.9% growth of the industry during the same time frame. The S&P 500 composite has increased 9.3%.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.

Prestige Consumer develops, manufactures, markets, sells and distributes over-the-counter (OTC) healthcare and household cleaning products in the United States, Canada, Australia and certain other international markets. Also, it operates through the e-commerce channel.

The company reports operating results under two segments — North American OTC Healthcare and International OTC Healthcare. Some of the major brands under North American and International OTC Healthcare are BC and Goody's, Chloraseptic, Compound W, Debrox, Dramamine, Fess, Fleet, Hydralyte, Monistat, Nix and Summer's Eve, among others. 

Factors Favoring PBH’s Share Price Growth

Prestige Consumer’s share price is trending upward, prompted by its diverse portfolio of well-recognized consumer brands. In the fourth quarter of fiscal 2025, the largest dollar contributions came from the Gastrointestinal (GI) and Women’s Health categories, led by strong performances from flagship brands like Dramamine, Fleet and Summer’s Eve. Furthermore, PBH is experiencing impressive growth in the e-commerce channel, continuing its long-term trend of increasing online purchases. This optimism, driven by a solid fiscal 2025 fourth-quarter performance and increasing revenues from all reportable business segments, is expected to contribute further.

Investors show optimism about Prestige Consumer’s strategic acquisitions. The company acquired TheraTears and four other over-the-counter consumer brands across the VMS and Cough & Cold categories from Akorn Operating Company LLC. It also acquired Hydralyte (an over-the-counter oral rehydration brand in Australia) from the Hydration Pharmaceuticals Trust of Victoria, Australia. 

PBH’s emphasis on brand building and product innovation looks encouraging. The long-term brand-building initiatives, combined with efficient marketing, channel development and innovative approaches, have enabled its brands to consistently maintain a leading market share position. In lieu of this, Hydralyte exemplifies Prestige Consumer Healthcare’s long-term approach, especially in its core Australian market. Per the latest update, following the achievement of global rights (excluding the United States), PBH is gradually expanding Hydralyte into untapped international markets by building retail partnerships and increasing consumer awareness. 

Another one within GI is the Fleet brand, a clear market leader with a 100-plus-year history since its creation. Currently, this brand holds over 50% share of the rectal laxative category. It is currently focusing on expanding into adjacent categories, such as oral laxatives. Further, Prestige Consumer is making progress in its women's health franchise, which is represented by two distinct leading market share brands — Monistat and Summers Eve.

Factors That May Offset PBH’s Gains

In the past few years, global economic conditions have been volatile due to factors like supply-chain constraints, rising interest rates, a high inflationary environment and geopolitical events. Additionally, Prestige Consumer is likely to face cost headwinds from the new tariff-related expenses. As a result, for fiscal 2026, the company anticipates approximately $15 million in tariff costs, equivalent to about $20 million on an annualized basis, which could affect gross margins.

Furthermore, fluctuating foreign exchange rates remain a concern for Prestige Consumer, as it generates a substantial amount of its total revenues from international business. This could result in unfavorable price increases for the company’s products or lead to higher costs for certain products purchased from its foreign third-party manufacturers.

A Look at PBH’s Estimates

The Zacks Consensus Estimate for fiscal 2026 EPS has moved north 0.2% to $4.77 in the past 30 days.

Prestige Consumer has an earnings yield of 5.6% compared with the industry’s 0.6%. 

Other Stocks to Consider

Some other top-ranked stocks in the broader medical space are Phibro Animal Health PAHC, STERIS STE and Inspire Medical Systems INSP. 

Phibro Animal Health has an estimated long-term earnings growth rate of 26.2% compared with the industry’s 15.9%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 30.6%. Its shares have rallied 26.3% compared with the industry’s 10% growth in the past year.

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

STERIS, currently carrying a Zacks Rank #2, has an earnings yield of 4.1% against the industry’s -3.1%. Shares of the company have rallied 8.8% against the industry’s 14.8% decline. STE’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.1%.

Inspire Medical Systems, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 28.9% compared with the industry’s 25.2%. Shares of the company have lost 9.5% against the industry’s 19.6% growth. INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 356.9%.

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

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