Core Insights - Current market dynamics are influenced by skepticism around AI spending, geopolitical tensions in the Middle East, and stress in private credit markets [1] - Successful investing involves identifying businesses with durable models, strong growth outlooks, and appropriate valuations, particularly in small-cap stocks where inefficiencies exist [2] Company Summaries Phibro Animal Health (PAHC) - Phibro Animal Health operates in the global livestock and animal nutrition markets, benefiting from consistent demand linked to global protein consumption [5] - The company has seen consistent earnings revisions, supporting a Zacks Rank 1 (Strong Buy) rating, indicating improving fundamental momentum [6] - Shares trade at 17.6x forward earnings with a PEG ratio of 0.82, supported by projected EPS growth of 21.5% annually over the next 3–5 years, suggesting growth is not fully priced in [7] Deluxe (DLX) - Deluxe has transitioned from a legacy check-printing company to a diversified provider of payments, data, and marketing solutions, generating revenue from higher-margin digital services [9] - The company holds a Zacks Rank 2 (Buy) as its transformation continues to improve sentiment [10] - Shares trade at 6.7x forward earnings with a PEG ratio of 0.55, indicating a favorable risk/reward setup, and are forming a bull flag pattern, suggesting potential for a breakout [11] Remitly Global (RELY) - Remitly Global facilitates cross-border payments, with revenues expected to grow at nearly 20% annually over the next two years, supported by structural demand [12] - The stock trades at approximately 30x forward earnings, justified by projected EPS growth of 55.3% annually over the next 3–5 years, resulting in a PEG ratio of 0.54 [13] - With a Zacks Rank 2 (Buy), the company is positioned for strong fundamental performance and potential multiple expansion [14] BrightSpring Health Services (BTSG) - BrightSpring Health Services is well-positioned in the healthcare sector, benefiting from demographic trends related to an aging population and rising demand for home and community-based care [15] - The company has a Zacks Rank 1 (Strong Buy) reflecting strong earnings momentum, with projected EPS growth of 47.2% annually over the next 3–5 years, despite trading at 25.8x forward earnings [17] - The stock has shown a steady uptrend, indicating accumulation by long-term investors, which could support continued upward momentum [18] Investment Opportunities - The four companies—PAHC, DLX, RELY, and BTSG—stand out for their earnings momentum, attractive growth-adjusted valuations, and favorable technical setups, presenting differentiated investment opportunities in a crowded market [19]

Core Insights - Phibro Animal Health (PAHC) shares have increased by 152.3% over the past year, significantly outperforming the industry's decline of 22.3% and the S&P 500's gain of 16.6% [1][9] Company Performance - The company currently holds a Zacks Rank 1 (Strong Buy), benefiting from a robust animal health portfolio and the integration of Zoetis' MFA business, which has enhanced its product offerings [2] - In the second quarter of fiscal 2026, MFA revenues grew by 34%, driven by strong performance in nutritional specialties and vaccines, with the new MFA business contributing $94.1 million in sales [5] - The vaccine segment saw a 13% year-over-year increase in net sales, primarily due to growth in poultry products in Latin America and higher international demand [7][9] Product and Market Expansion - Phibro markets around 800 product lines across approximately 90 countries, focusing on food and companion animals, and is investing in the companion animal sector [3] - The MFA product franchise, including Stafac/V-Max/Eskalin, is approved in over 30 countries, and the integration of Zoetis' MFA business has added more than 37 established product lines [4] - The company's global footprint includes key high-growth regions such as Southeast Asia, Mexico, Turkey, and Canada, with net sales in Europe, the Middle East, and Africa increasing by 37.4% year over year [6] Financial Estimates - The Zacks Consensus Estimate projects a 45% increase in earnings per share (EPS) for fiscal 2026, reaching $3.03, and an 8.2% increase for fiscal 2027, reaching $3.28 [12] - Revenues for fiscal 2026 are expected to grow by 14.5% to $1.48 billion, with fiscal 2027 revenues projected to reach $1.54 billion, indicating a 3.5% increase [12] Financial Health - The company has solid liquidity, exiting the quarter with cash and short-term investments totaling $74.5 million and short-term payable debt of $21 million [10]

Core Insights - Bristol Gate Capital Partners emphasizes investing in companies with strong free cash flows, disciplined capital allocation, and high dividend growth for superior risk-adjusted returns [1] - The market has shifted towards AI leaders since late 2022, leading to underperformance for the fund due to narrow market breadth [1] - Recent outperformance of S&P US Dividend Growers, S&P 500 Dividend Aristocrats, and S&P 500 Equal Weight indicates a potential shift in market dynamics, providing opportunities for investors [1] Company Focus: Zoetis Inc. (NYSE:ZTS) - Zoetis Inc. is an animal health company specializing in medications, vaccines, and diagnostic products, with a market capitalization of approximately $49.953 billion [2] - The stock closed at $113.35 on March 27, 2026, with a -12.10% return in the past month and a -31.16% return over the past twelve months [2] - In Q4, Zoetis was a significant detractor in the Materials and Consumer Discretionary sectors, facing challenges such as fewer US veterinarian visits and increased competition [3] Financial Performance and Dividend Growth - Zoetis reported earnings that exceeded consensus expectations, but sales fell short, leading to a lowered annual guidance and a stock decline [3] - The company announced a dividend increase of only 6% for the coming year, a significant slowdown compared to its historical annualized dividend growth rate of 22% during the holding period [4] - The decision to exit the position was influenced by the deteriorating dividend growth outlook and setbacks related to its key osteoarthritis drug, Librela [4]

Core Insights - Cencora, Inc. (COR) has announced a definitive agreement to acquire EyeSouth Partners' retina business for $1.1 billion, aiming to expand its Retina Consultants of America (RCA) platform and strengthen its presence in the ophthalmology and retina care market [1][8] Company Developments - The acquisition is expected to enhance Cencora's long-term growth by deepening its presence in the high-margin retina care segment, driven by aging demographics and increasing chronic eye disease incidence [4] - The integration of EyeSouth's retina business into RCA will expand the physician network, improve access to clinical trials and advanced therapies, and drive greater scale efficiencies [4][10] - Cencora's market capitalization currently stands at $63.59 billion, and the company reported an earnings surprise of 0.25% in the last quarter [5] Financial Implications - The $1.1 billion acquisition is anticipated to be slightly accretive to adjusted diluted EPS within the first 12 months post-closing, even after considering financing costs [11] - Cencora has reaffirmed its fiscal 2026 guidance without including contributions from the acquisition, indicating a cautious outlook [12] Industry Outlook - The global retinal disorder treatment market was valued at $13.69 billion in 2023 and is projected to reach $25.69 billion by 2030, growing at a CAGR of 9.4%, positioning Cencora to capitalize on this growth through its expanded RCA platform [13]

Company Overview - Zoetis Inc. is a leader in the animal health sector, focusing on livestock and companion animals across seven major product categories, including parasiticides, vaccines, and anti-infectives [11] - The company caters to eight core species, which include both livestock (cattle, swine, poultry, fish, and sheep) and companion animals (dogs, cats, and horses) [11] Investment Ratings - Zoetis has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [12] - The company also has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 16.5, making it appealing to value investors [12] Earnings Estimates - In the last 60 days, nine analysts have revised their earnings estimates upwards for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.21 to $6.99 per share [12] - Zoetis has demonstrated an average earnings surprise of +6.3%, indicating a positive trend in earnings performance [12] Investment Consideration - With a solid Zacks Rank and strong Value and VGM Style Scores, Zoetis is recommended to be on investors' short lists for potential investment opportunities [13]

It’s exceedingly expensive to own a pet, prompting owners to delay veterinary visits or reconsider adopting. Yet, animal health companies’ earnings keep growing. https://t.co/HGrvxNUVn6 ...

Core Viewpoint - ImmuCell Corporation has appointed Kathy Turner to its Board of Directors, effective April 1, 2026, replacing Steven Rosgen, who is retiring after serving since January 2018 [1][3]. Group 1: Board Appointment - Kathy Turner brings over 30 years of commercial executive leadership experience in global healthcare and animal health markets [2]. - She previously served on the Board of Directors of Elanco Animal Health and held senior leadership roles at IDEXX Laboratories, contributing to sustained double-digit growth in international markets [2]. - Turner will serve as Chair of the Compensation and Stock Option Committee and as a member of the Audit Committee upon joining the Board [1]. Group 2: Company Insights - ImmuCell Corporation focuses on improving calf health and productivity through its primary product line, First Defense, which provides Immediate Immunity™ against major viral and bacterial causes of scours in neonatal calves [4]. - The company aims to expand the reach of its First Defense product both in the U.S. and internationally, leveraging Turner's extensive experience in the animal health industry [3].

Core Insights - Diamond Hill Capital's "Mid Strategy" reported a strong performance in Q4 2025, with a return of 3.65% compared to the Russell Midcap Index's 0.16% [1] - The strategy's year-to-date return was 13.47%, outperforming the Russell Midcap Index's 10.60% [1] - AI-related spending was a significant driver in equity markets, although investor caution emerged in December 2025 [1] Company Overview: Zoetis Inc. (NYSE:ZTS) - Zoetis Inc. is a leader in the animal health market, focusing on medications, vaccines, and diagnostic products for both companion animals and livestock [3] - As of March 17, 2026, Zoetis Inc. shares closed at $121.68, with a market capitalization of approximately $53.624 billion [2] - The stock experienced a -5.77% return in the past month and a -25.69% decline over the past twelve months [2] Investment Positioning - Concerns regarding an arthritis drug for dogs have negatively impacted Zoetis Inc.'s share price, creating an opportunity for investment below intrinsic value estimates [3] - Despite its potential, Zoetis Inc. is not among the 40 most popular stocks among hedge funds, with 69 hedge fund portfolios holding the stock at the end of Q4, down from 72 in the previous quarter [4] - The company is viewed as having less upside potential compared to certain AI stocks, which are considered to carry less downside risk [4]

Core Insights - Zomedica has announced a strategic collaboration with Boehringer Ingelheim to enhance equine endocrine diagnostic testing using the TRUFORMA platform, aiming to accelerate adoption and drive recurring diagnostic revenue [1][3][8] Collaboration Details - The collaboration integrates Zomedica's TRUFORMA system into Boehringer Ingelheim's idPPID™ awareness and testing program, allowing veterinarians to conduct rapid endocrine testing at the point of care [2][3] - Zomedica will promote the idPPID program to veterinarians within its customer networks, while Boehringer Ingelheim will reimburse participating veterinarians for diagnostic testing performed with the TRUFORMA platform [4][5] Market Context - Pituitary pars intermedia dysfunction (PPID), affecting approximately 20-25% of horses over 15 years old, is the most common endocrine disorder in aging horses [6] - The TRUFORMA® equine endogenous ACTH (eACTH) assay has shown the closest agreement to reference laboratory results compared to other commercially available assays, supporting its reliability for diagnosing PPID [7] Company Background - Zomedica is a veterinary health company focused on diagnostic and therapeutic solutions for equine and companion animals, with a total addressable market in the U.S. exceeding $2 billion [10] - The company reported a 17% revenue growth in 2025, reaching $32 million, and maintains a strong balance sheet with approximately $53 million in liquidity as of December 31, 2025 [10]

Core Viewpoint - Elanco Animal Health Inc. has shown a positive outlook for the year, supported by plans to leverage AI, despite a challenging earnings performance last year [1][3]. Group 1: Financial Performance - Elanco reported a net loss of $232 million, a significant decline from a net income of $338 million the previous year [3]. - Revenues increased by 6 percent year-on-year, reaching $4.7 billion, up from $4.44 billion [3]. - In the fourth quarter, the net loss widened by 3,350 percent to $276 million from $8 million in the same period a year earlier, while revenues rose by 12 percent to $1.144 billion from $1.02 billion year-on-year [3]. Group 2: Growth Strategy - The company aims to grow its organic revenues by 4 to 6 percent and its adjusted EBITDA by 8 percent this year [2]. - Elanco plans to utilize the rapidly growing AI across various operations and pursue mergers and acquisitions to enhance research and development [2]. Group 3: Market Reaction - Elanco's stock price increased by 7.61 percent to finish at $25.18, marking a rally for the third consecutive day [1].