Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

Core Viewpoint - Perrigo (PRGO) shows potential for significant upside, with a mean price target of $36.67 indicating a 32.9% increase from the current price of $27.60 [1] Price Targets - The average price target consists of three estimates ranging from a low of $30 to a high of $42, with a standard deviation of $6.11, suggesting variability in analyst predictions [2] - The lowest estimate indicates an 8.7% increase, while the highest suggests a 52.2% upside [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement [9] Analyst Sentiment - Analysts exhibit strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has increased by 0.1% over the past month, with no negative revisions [12] - PRGO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on price targets for investment decisions may be misleading, as analysts often set overly optimistic targets due to business incentives [8][10] - Empirical research indicates that price targets rarely predict actual stock price movements, suggesting a need for skepticism [7][10]

Business Model & Strategy - Perrigo 拥有独特、互补且可扩展的业务模式，通过品牌和商店品牌提供 250 多种分子和剂型组合[4] - Perrigo 正在实施“三S计划”以实现有吸引力的可持续股东总回报(TSR)，包括稳定、精简和加强三个阶段[10, 11] - Perrigo 独特地提供跨价值范围的产品[12] Financial Performance & Metrics - 2024 财年，Perrigo 的净销售额中，品牌产品约占 40%，商店品牌约占 60%[13] - Perrigo 预计调整后的每股收益(EPS)同比增长将达到两位数，市盈率(P/E)倍数将达到较高的个位数[27] - Perrigo 的目标是到 2027 财年，自由现金流(FCF)/销售额较 2024 年提高 40% 以上，净杠杆率低于 3 倍[11] Consumer Self-Care International (CSCI) Segment - 消费者自我保健国际部门(CSCI)预计将主要由品牌驱动增长[15] - 2024 财年，CSCI 的有机净销售额增长率为 2.9%，调整后的营业利润率为 21.0%[16] - Perrigo 在欧洲的咳嗽/感冒产品中排名第三[19] Market Trends & Opportunities - 美国非处方药(OTC)商店品牌的销量份额最近有所增长，截至 2025 年 4 月 20 日的 4 周内增长了 110 个基点，截至 2025 年 5 月 18 日的最新 4 周内增长了 50 个基点[23] - Perrigo 在美国商店品牌中占据领先地位，市场份额约为 50%，并且在美国拥有 62% 的家庭渗透率[13]

Summary of Perrigo Company (PRGO) FY Conference - June 10, 2025 Company Overview - Perrigo is a global leader in the self-care market, holding over 50% of the US store brand share and ranking among the top 10 branded companies in Europe [4][5] - The company offers a diverse range of products across various price points, catering to different economic cycles and consumer habits [5][6] Core Business Strategy - Perrigo's strategy is anchored on three imperatives: stabilize, streamline, and strengthen [6][7] - The focus is on returning the US store brand to growth, ensuring reliable quality in infant formula supply, and driving innovation in high-growth brands [7][8] - The company aims for incremental revenue growth of $100 to $200 million by 2027, with a target of reducing net leverage below three times by the end of the year [8][12] Market Position and Performance - Perrigo's portfolio is diversified, with 40% of sales from branded products and 60% from store brand contributions [8][9] - The company is the largest OTC manufacturer by volume in the US and UK, with products present in nearly two-thirds of US households and over 80% of UK households [9][10] - Recent store brand volume share in the US increased by 110 basis points in May, indicating strong market performance [14] Financial Outlook - The company is trading at a significant discount compared to consumer health peers, presenting a value opportunity [11] - Expected double-digit adjusted EPS growth in 2025, with a high single-digit PE multiple [15] - Plans to improve free cash flow to net sales ratio by 200 basis points over three years, focusing on inventory optimization and operational efficiency [55][56] Challenges and Opportunities - The macro environment remains fluid, with pressures on consumer spending affecting OTC categories [13][29] - Trade-down behavior is observed in various categories, but Perrigo's position as a store brand provider offers a defensive advantage [13][29] - The infant formula business is recovering, with plans to launch 60 new SKUs to enhance market share [40][41] Regulatory and Tariff Considerations - The company anticipates a 1% increase in COGS due to tariffs, amounting to approximately $35 million in 2025 [48] - Ongoing strategic reviews of the oral care and derma cosmetic businesses to optimize portfolio focus [51][53] Conclusion - Perrigo is well-positioned to leverage its unique market position and diversified portfolio to drive growth and shareholder value, while navigating challenges in the consumer landscape and regulatory environment [22][54]

Core Viewpoint - Perrigo's shares have declined approximately 3.1% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Group 1: Earnings Estimates - Fresh estimates for Perrigo have trended downward over the past month, with the consensus estimate shifting down by 5.22% [2] - The overall direction and magnitude of estimate revisions indicate a downward shift in expectations for the stock [4] Group 2: VGM Scores - Perrigo has a subpar Growth Score of D and a similar score for momentum, but it received an A grade for value, placing it in the top quintile for this investment strategy [3] - The aggregate VGM Score for Perrigo is B, which is relevant for investors not focused on a single strategy [3] Group 3: Industry Performance - Perrigo is part of the Zacks Medical - Products industry, where GE HealthCare Technologies has gained 1.5% over the past month, reporting revenues of $4.78 billion, a year-over-year increase of 2.7% [5] - GE HealthCare's expected earnings for the current quarter are $0.91 per share, reflecting a 9% decrease from the previous year, with a Zacks Rank of 4 (Sell) and a VGM Score of C [6]

Core Insights - The article emphasizes the importance of the Zacks Rank and earnings estimates in identifying strong stocks, while also acknowledging that investors have their own strategies [1] - Value investing is highlighted as a preferred method for finding strong stocks across various market conditions, utilizing established valuation metrics [2] - The Style Scores system is introduced, particularly the "Value" category, which helps value investors identify stocks with high Zacks Ranks and "A" grades for Value [3] Company Analysis: Perrigo (PRGO) - Perrigo is currently rated with a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential as a value stock [4] - The stock's P/E ratio stands at 8.44, significantly lower than the industry average of 21.72, suggesting it may be undervalued [4] - Over the past year, PRGO's Forward P/E has fluctuated between 7.66 and 10.15, with a median of 8.85, indicating a stable valuation range [4] - The P/S ratio for Perrigo is 0.82, compared to the industry's average P/S of 1.32, further supporting the notion of undervaluation [5] - These metrics collectively suggest that Perrigo is likely undervalued, making it an attractive option for value investors [6]

Core Insights - Perrigo Company plc announced the retirement of Ron Janish, EVP Global Operations and Supply Chain, effective September 30, 2025, after over two decades with the company [1][2] - Matt Winterman has been appointed as the new EVP Product Supply, Operations Strategy and Transformation Officer, effective June 23, 2025, bringing over 20 years of experience in global supply chain and strategy [1][3] Group 1: Leadership Transition - Ron Janish played a crucial role in aligning Perrigo's supply chain with its transformation into a consumer self-care leader and led the Supply Chain Reinvention program, which improved forecast accuracy and reduced portfolio complexity [2] - Matt Winterman previously served as SVP of Global Supply Chain and Strategy at AstraZeneca, overseeing a $54 billion supply chain, and has held significant roles at Roche and GSK [3] Group 2: Strategic Importance - The leadership transition is expected to enhance Perrigo's manufacturing and supply chain capabilities, supporting the execution of its long-term consumer self-care strategy [4] - Winterman expressed his commitment to driving initiatives that ensure the supply chain operates at high standards, delivering self-care solutions reliably to consumers [4] Group 3: Company Overview - Perrigo is a leading self-care company with over a century of experience, primarily serving consumers in North America and Europe [5] - The company offers a range of over-the-counter self-care solutions, ensuring accessibility and choice across various product categories [5][6]

Company Overview - Perrigo Company plc is a leading pure-play self-care company with over a century of experience in providing high-quality health and wellness solutions primarily in North America and Europe [2] - The company is a pioneer in the over-the-counter (OTC) self-care market, offering trusted self-care solutions that do not require a prescription, ensuring accessibility and choice for consumers across various molecules, dosage forms, and value tiers [2] Business Model - Perrigo's unique business model leverages complementary businesses, where cash-generative store brand private label offerings fuel investments for leading brands, including Opill®, Mederma®, Compeed®, EllaOne®, and Solpadeine® [3] Upcoming Events - President and CEO Patrick Lockwood-Taylor and CFO Eduardo Bezerra are scheduled to present at the Oppenheimer 25th Annual Consumer Growth & E-Commerce Conference on June 10 at 9 AM ET, which will be conducted virtually [1]

Group 1 - Perrigo's shares have increased by 8.8% over the past four weeks, closing at $26.91, with a mean price target of $34.25 indicating a potential upside of 27.3% [1] - The mean estimate includes four short-term price targets with a standard deviation of $6.95, where the lowest estimate suggests a 0.3% increase and the highest predicts a 56.1% surge to $42 [2] - Analysts show a consensus that Perrigo will report better earnings than previously estimated, which is a positive indicator for potential stock upside [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 1.5%, with two estimates moving higher and one lower over the last 30 days [12] - Perrigo holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [13] - While price targets should not be the sole basis for investment decisions, the direction implied by these targets can serve as a useful guide for further research [10][11]

Group 1 - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1][2] - Value investing is a preferred strategy for finding strong stocks, relying on traditional analysis of key valuation metrics to identify undervalued stocks [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are considered strong value stocks [3] Group 2 - Perrigo (PRGO) is highlighted as a potential value investment, currently holding a Zacks Rank of 2 (Buy) and an A grade for Value [4] - PRGO has a Forward P/E ratio of 8.77, significantly lower than the industry average of 22.45, with its Forward P/E ranging from a high of 10.68 to a low of 7.66 over the past year [4] - The P/S ratio for PRGO is 0.87, compared to the industry's average P/S of 1.38, indicating that PRGO may be undervalued [5] - Overall, PRGO stands out as one of the market's strongest value stocks, supported by its earnings outlook and valuation metrics [6]