Among the medical sector, Alcon ALC and Prestige Consumer Healthcare PBH are two intriguing stocks to buy for growth as their quarterly results approach on Tuesday, May 14.
Alcon stands out as a provider of a full suite of eye care products while Prestige distributes over-the-counter (OTC) healthcare and household cleaning products. Let’s take a look at their expansion and get a better gauge as to why now is a good time to buy Alcon and Prestige’s stock.
Alcon Preview
Alcon primarily provides ophthalmic products for various eye surgeries and along with its contact lenses has a comprehensive portfolio of ocular health products for dry eye, allergies, and redness. First quarter sales are projected to rise 5% to $2.46 billion with Q1 earnings expected to be up 3% to $0.72 a share. Notably, Alcon has surpassed the Zacks EPS Consensus in three of its last four quarterly reports with Q4 earnings of $0.70 a share most recently beating bottom line expectations by 3% in February.
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Prestige Preview
Through its subsidiaries, Prestige has a wide range of OTC products with some of its major brands including BC/Goody’s analgesic powders, Boudreaux’s baby ointments, Chloroacetic sore throat treatments and mouth pain products, and Clear Eyes eye care products among others.
Reporting its fiscal fourth quarter results on Tuesday, Prestige’s Q4 sales are expected to slightly increase to $286.91 million compared to $285.87 million in the comparative quarter. Even better, Q4 EPS is projected to expand 6% to $1.14. Prestige has also surpassed its bottom line expectations in three of its last four quarterly reports with Q3 EPS of $1.06 most recently exceeding estimates by 2% in February.
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Growth Trajectories
Further illustrating their steady growth is that Alcon’s total sales are projected to increase 6% in fiscal 2024 with the company’s top line expected to expand another 6% in FY25 to $10.56 billion. More impressive, annual earnings are forecasted to jump 11% this year to $3.05 per share with another 14% EPS growth projected in FY25.
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As for Prestige, total sales are expected to be virtually flat in FY24 but are projected to rise 2% in FY25 to $1.16 billion. Prestige’s annual earnings are now forecasted to increase 3% this year and are expected to rise another 6% in FY25 to $4.61 per share.
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Takeaway
Experiencing lofty expansion in recent years, investors shouldn’t overlook the steady growth of Alcon and Prestige Consumer Healthcare. To that point, both stocks sport a Zacks Rank #2 (Buy) ahead of their quarterly reports on Tuesday.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
