#3 - Perrigo (NYSE:PRGO)
Perrigo Co. (NYSE: PRGO) is a different way to play the health and wellness market. The Ireland-based company makes over-the-counter (OTC) products for consumers in the United States and internationally.
PRGO stock is trading near 15-year lows after falling over 12% in 2024 and more than 25% in the last 12 months. One reason for this is a steep decline in revenue for the company’s infant formula. In 2023, the FDA issued a warning letter related to specific manufacturing processes at its Wisconsin plant. The company is addressing those issues at that plant as well as its plants in Vermont and Ohio. However, that comes at a cost of approximately $40 million.
However, Perrigo looks like a solid, buy-the-dip candidate. Analysts project 23% earnings growth, and at 11x forward earnings, the stock’s valuation is starting to look too good to pass up. That’s particularly true when it comes with a dividend that’s been growing for 22 consecutive years and has a current yield of 3.88%.
About Perrigo
Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers.
Read More - Current Price
- $27.10
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $37.00 (36.5% Upside)
