Veterinary Health Is A Buy

With the market dipping again, we are hunting bargains in the holiday-shortened week. Today Phibro Animal Health (PAHC) has hit my radar.

This manufacturer of animal health and nutrition products has generated consistent free cash flow, but supply chain issues and rising costs have impacted earnings recently.

However, the company has raised prices to limit the impact and plans to keep pushing costs to consumers through shipping surcharges and other methods.

The stock, which traded as high as $30 in July, looks washed out at 15X this year’s EPS estimates and should find technical support near its current price.

Buy PAHC below $20.50. My target is $25. The 2.4% dividend yield will also support the stock.