When it comes to the world of medical stocks, two contenders stand out: one being Alcon and the other, Prestige Consumer Healthcare. As their quarterly earnings circle closer on the calendar, investors are keeping a close eye on their potential for growth. Alcon shines as a provider of a wide range of eye care products, while Prestige focuses on distributing over-the-counter (OTC) healthcare and household cleaning products. Let’s dive into their prospects and explore why now might be an opportune moment to consider investing in these two stocks.
First up, Alcon, a company specializing in ophthalmic products for various eye surgeries alongside a comprehensive portfolio of ocular health products. The upcoming first-quarter sales are predicted to see a 5% surge, reaching $2.46 billion, with earnings expected to rise by 3% to $0.72 per share. Notably, Alcon has outperformed the Zacks EPS Consensus in three of its last four quarterly reports. In the recent Q4, earnings of $0.70 per share exceeded bottom line expectations by 3% back in February.
Prestige, on the other hand, operates through its subsidiaries with a diverse range of OTC products, including popular brands such as BC/Goody’s analgesic powders, Boudreaux’s baby ointments, Chloroacetic sore throat treatments, mouth pain products, and Clear Eyes eye care products. The fiscal fourth-quarter results for Prestige are anticipated to show a slight increase in sales to $286.91 million compared to the last quarter. Furthermore, Q4 EPS is expected to grow by 6% to $1.14. Consistently exceeding bottom line expectations, Prestige reported a Q3 EPS of $1.06, surpassing estimates by 2% in February.
Moving forward, the growth projections for Alcon are quite promising. Total sales are set to rise by 6% in fiscal 2024, with a further 6% expansion expected in FY25, reaching a substantial $10.56 billion. Earnings per share (EPS) are also forecasted to surge by 11% this year to $3.05, followed by an additional 14% growth in FY25.
Comparatively, Prestige’s sales are estimated to remain steady in FY24 but are anticipated to pick up by 2% in FY25, reaching $1.16 billion. Earnings are likewise expected to climb by 3% this year and a further 6% in FY25, reaching $4.61 per share.
As we crunch the numbers and assess the performance, it’s apparent that the growth trajectory for both Alcon and Prestige Consumer Healthcare is on a steady incline. With a Zacks Rank #2 (Buy) for both these stocks leading up to their imminent quarterly reports, investors are advised not to underestimate the potential these companies hold.
