Singapore Markets closed

Perrigo's Stock Up, Starboard's CEO Calls it a Key Pick

Zacks Equity Research

Perrigo Company plc’s PRGO shares increased almost 5% after Jeff Smith, CEO of Starboard Value, a New York-based investment consulting company, declared that the company was a top investment option at the Delivering Alpha event hosted by CNBC.

Notably, Perrigo is one of the world’s largest manufacturers of over-the-counter (OTC) healthcare products and supplier of infant formulas for the store brand market. It is a leading provider of branded OTC products in the EU and the United States. The company also produces generic standard topical products.

However, Perrigo’s shares have underperformed the industry so far this year. The stock has gained 7% compared with the broader industry’s 21.7% increase.

During the conference, Jeff stated that Perrigo is undervalued at present due to pricing pressure, particularly in generics segment and because of changing dynamics in the United States. He continued to say that the company holds huge potential as a much larger business on the whole when compared with any single brand.

He further added that though many retailers are facing online challenges from e-commerce giants like Amazon AMZN, Perrigo can utilize it as a prime distribution outlet for generic drugs and other over-the-counter (OTC) products.

At the conference, Jeff Smith also cited Altaba Inc. AABA, a New York based investment company as another good option for investors to put money in.

We remind investors that Jeff Smith has placed a total of five members on the company’s board including two new ones who came late in 2016.

Perrigo Company Price

Perrigo Company Price | Perrigo Company Quote

Zacks Rank & Stock to Consider

Perrigo currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the pharma sector is ACADIA Pharmaceuticals Inc. ACAD holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ACADIA’s loss per share estimates narrowed from $2.82 to $2.57 for 2017 and from $2.07 to $1.90 for 2018 over the last 60 days. The company came up with positive earnings surprises in two of the last four quarters with an average beat of 7.97%.

More Stock News: This Is Bigger than the iPhone!                  

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Perrigo Company (PRGO) : Free Stock Analysis Report
 
ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research