Healthcare Stocks Present Dividend Opportunities Amid Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy PRGO?
Source: Fool
- Perrigo's Value Trap: Perrigo's stock has plummeted by 90% over the past decade, and while it currently offers an 8.2% dividend yield, declining sales and analyst downgrades suggest investors should tread carefully as further price declines may occur.
- Pfizer's Rebound Potential: With a dividend yield of 6.7%, Pfizer faces declining COVID-19 revenues; however, strong growth in non-COVID drugs indicates a potential turnaround, making it a buy opportunity while dividends remain above average.
- Embecta's Turnaround Potential: Embecta's shares have dropped 37% in the past year, yet its 5.5% forward dividend yield and the CEO's optimistic outlook on the GLP-1 product line could present a buying opportunity, potentially improving investor sentiment if initial successes are achieved.
- Attractiveness of Healthcare Sector: While the healthcare sector is considered recession-resistant, investors must remain vigilant against potential yield traps and conduct thorough due diligence to avoid value traps when selecting investment targets.
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Analyst Views on PRGO
Wall Street analysts forecast PRGO stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 14.190
Low
18.00
Averages
20.33
High
23.00
Current: 14.190
Low
18.00
Averages
20.33
High
23.00
About PRGO
Perrigo Company plc is a provider of over the counter (OTC) health and wellness solutions that are designed to enhance individual well-being. Its segments include Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI). The CSCA segment comprises of its consumer self-care business in the United States and Canada. It primarily provides its customers self-care products that are sold and marketed under the customer's own brands and/or exclusive brands. The CSCI segment comprises of its consumer self-care business outside of the United States and Canada, primarily in Europe and Australia. These products are developed, manufactured, marketed, and distributed by the Company. Its product categories include Upper Respiratory, Pain and Sleep-Aids, Skincare and Personal Hygiene, Digestive Health, and Nutrition. Its primary branded products are sold under brand names Compeed, Dr. Fresh, Firefly, Good Sense, Mederma, Nasonex, Solpadeine, Coldrex, and Physiomer, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PERRIGO STOCK DROPS 7.4% FOLLOWING Q4 PROFIT DISAPPOINTMENT
- Company Performance: Perrigo shares fell by 7.4% following the announcement of their fourth-quarter results.
- Profit Estimates: The decline in share value was attributed to missing profit estimates for the quarter.
See More
Perrigo Set to Announce Q4 Earnings on February 26
- Earnings Announcement: Perrigo (PRGO) is set to release its Q4 earnings on February 26 before market open, with a consensus EPS estimate of $0.78, reflecting a 16.1% year-over-year decline, indicating potential profitability challenges for the company.
- Revenue Decline: The expected revenue for Q4 is $1.09 billion, down 4.4% year-over-year, highlighting possible challenges the company faces in a competitive market, particularly amid soft consumer demand.
- Historical Performance Review: Over the past two years, Perrigo has beaten EPS estimates 75% of the time but only 38% of the time for revenue, suggesting significant volatility in the company's profitability that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw one upward revision and two downward revisions, while revenue estimates experienced no upward revisions and two downward revisions, reflecting analysts' cautious outlook on the company's future performance.
See More
Perrigo (PRGO) Q4 2025 Earnings Call Transcript
See More
Perrigo Company Q4 2025 Earnings Call Insights
- Market Share Gains: Perrigo achieved over $100 million in new distribution and competitive market share gains in 2025, with the CEO emphasizing that this progress reflects strong engagement with consumers and retailers, despite a generally soft market environment.
- Stable Financial Performance: The company's 2025 GAAP results showed a 2% increase in operating income and a 7% rise in EPS to $2.75, aligning with revised guidance, even as core organic net sales declined by 2%.
- Strategic Transformation Plan: Perrigo announced the introduction of new reporting segments in 2026, including Self-care, Specialty Care, and Infant Formula, to provide clearer performance insights, while also planning a global workforce reduction of approximately 7% over the next two years, with expected annualized pretax savings of $80 million to $100 million.
- Cautious Future Outlook: Management anticipates 2026 to be a
See More
Perrigo Issues 2026 Financial Guidance Amid Losses
- 2026 Financial Outlook: Perrigo projects adjusted earnings per share for fiscal 2026 to be between $2.00 and $2.30, despite an anticipated total net sales decline of 5.5% to 1.5%, indicating significant market challenges and the urgency of strategic adjustments.
- Core Business Focus: The company sets its adjusted earnings per share for core operations at $2.25 to $2.55, with core net sales expected to change between a decline of 3.0% and growth of 1.0%, demonstrating Perrigo's prioritization of resource allocation to navigate market fluctuations.
- Operational Enhancement Program: Perrigo has launched a two-year enterprise-wide operational enhancement program, expecting to reduce approximately 7% of its workforce to improve supply chain and distribution efficiency, thereby strengthening its competitive position in the market.
- Widening Financial Losses: The company reported a net loss of $1.42 billion for the fourth quarter, translating to a loss of $10.22 per share, significantly up from a loss of $44.5 million or $0.32 per share in the prior year, primarily due to goodwill impairment charges, reflecting the financial pressures currently faced by the company.
See More
Perrigo Q4 Earnings Slightly Miss Expectations
- Earnings Performance: Perrigo reported a Q4 non-GAAP EPS of $0.77, missing expectations by $0.01, indicating pressure on profitability that could affect investor confidence.
- Revenue Details: The company's Q4 revenue of $1.11 billion, down 2.6% year-over-year, although beating market expectations by $20 million, reflects sluggish sales growth that may impact future market performance.
- Future Outlook: Perrigo's FY2026 'All In' total net sales outlook ranges from -5.5% to -1.5%, demonstrating a cautious stance on future performance that may raise concerns about its long-term growth potential among investors.
- EPS Guidance: The adjusted diluted EPS outlook for FY2026 is set between $2.00 and $2.30, providing specific figures but necessitating attention to market reactions to this guidance and its potential impact on stock prices.
See More
PERRIGO STOCK DROPS 7.4% FOLLOWING Q4 PROFIT DISAPPOINTMENT
- Company Performance: Perrigo shares fell by 7.4% following the announcement of their fourth-quarter results.
- Profit Estimates: The decline in share value was attributed to missing profit estimates for the quarter.
See More
Perrigo Set to Announce Q4 Earnings on February 26
- Earnings Announcement: Perrigo (PRGO) is set to release its Q4 earnings on February 26 before market open, with a consensus EPS estimate of $0.78, reflecting a 16.1% year-over-year decline, indicating potential profitability challenges for the company.
- Revenue Decline: The expected revenue for Q4 is $1.09 billion, down 4.4% year-over-year, highlighting possible challenges the company faces in a competitive market, particularly amid soft consumer demand.
- Historical Performance Review: Over the past two years, Perrigo has beaten EPS estimates 75% of the time but only 38% of the time for revenue, suggesting significant volatility in the company's profitability that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw one upward revision and two downward revisions, while revenue estimates experienced no upward revisions and two downward revisions, reflecting analysts' cautious outlook on the company's future performance.
See More
Perrigo (PRGO) Q4 2025 Earnings Call Transcript
See More
Perrigo Company Q4 2025 Earnings Call Insights
- Market Share Gains: Perrigo achieved over $100 million in new distribution and competitive market share gains in 2025, with the CEO emphasizing that this progress reflects strong engagement with consumers and retailers, despite a generally soft market environment.
- Stable Financial Performance: The company's 2025 GAAP results showed a 2% increase in operating income and a 7% rise in EPS to $2.75, aligning with revised guidance, even as core organic net sales declined by 2%.
- Strategic Transformation Plan: Perrigo announced the introduction of new reporting segments in 2026, including Self-care, Specialty Care, and Infant Formula, to provide clearer performance insights, while also planning a global workforce reduction of approximately 7% over the next two years, with expected annualized pretax savings of $80 million to $100 million.
- Cautious Future Outlook: Management anticipates 2026 to be a
See More
Perrigo Issues 2026 Financial Guidance Amid Losses
- 2026 Financial Outlook: Perrigo projects adjusted earnings per share for fiscal 2026 to be between $2.00 and $2.30, despite an anticipated total net sales decline of 5.5% to 1.5%, indicating significant market challenges and the urgency of strategic adjustments.
- Core Business Focus: The company sets its adjusted earnings per share for core operations at $2.25 to $2.55, with core net sales expected to change between a decline of 3.0% and growth of 1.0%, demonstrating Perrigo's prioritization of resource allocation to navigate market fluctuations.
- Operational Enhancement Program: Perrigo has launched a two-year enterprise-wide operational enhancement program, expecting to reduce approximately 7% of its workforce to improve supply chain and distribution efficiency, thereby strengthening its competitive position in the market.
- Widening Financial Losses: The company reported a net loss of $1.42 billion for the fourth quarter, translating to a loss of $10.22 per share, significantly up from a loss of $44.5 million or $0.32 per share in the prior year, primarily due to goodwill impairment charges, reflecting the financial pressures currently faced by the company.
See More
Perrigo Q4 Earnings Slightly Miss Expectations
- Earnings Performance: Perrigo reported a Q4 non-GAAP EPS of $0.77, missing expectations by $0.01, indicating pressure on profitability that could affect investor confidence.
- Revenue Details: The company's Q4 revenue of $1.11 billion, down 2.6% year-over-year, although beating market expectations by $20 million, reflects sluggish sales growth that may impact future market performance.
- Future Outlook: Perrigo's FY2026 'All In' total net sales outlook ranges from -5.5% to -1.5%, demonstrating a cautious stance on future performance that may raise concerns about its long-term growth potential among investors.
- EPS Guidance: The adjusted diluted EPS outlook for FY2026 is set between $2.00 and $2.30, providing specific figures but necessitating attention to market reactions to this guidance and its potential impact on stock prices.
See More
