Is it Apt to Retain Alcon Stock in Your Portfolio for Now?

Alcon’s ALC Vision Care business continues to gain from its diverse portfolio of contact lenses and ocular health products. Additionally, the introduction of new products is poised to help it grow in the upcoming quarters. Meanwhile, adverse macroeconomic conditions and intense competition may harm the company’s operations.In the past six months, this Zacks Rank #3 (Hold) stock has rallied 6.7% against the industry’s 8.4% decline. The S&P 500 composite has risen 5.1% in the same time frame.The renowned pharmaceutical and medical device manufacturer has a market capitalization of $43.49 billion. ALC’s earnings surpassed estimates in three of the trailing four quarters and matched in one, delivering an average surprise of 2.8%.Let’s delve deeper.Upsides for ALCVision Care Returns to Growth: Within Vision Care, Alcon is experiencing solid growth, driven by strong sales of its contact lenses and ocular health products. In contact lenses, the company is investing in fast-growing market segments where it has significant share opportunities. Vision Care closed the first quarter of 2025 with sales up 3% year over year. Sales of contact lenses were up 4%, primarily due to product innovation as well as price increases. The company continues to experience share gains, driven by product innovations, including the PRECISION1 and TOTAL30 families, as well as DAILIES TOTAL1 for astigmatism. Meanwhile, ocular health continues to deliver strong performance with its portfolio of eye drops, including strength in the SYSTANE family of artificial tears. In the first quarter, sales increased 2% year over year, with increased pricing contributing to the growth. New Products to Drive Growth: ALC’s continued investment in research and development (R&D) fuels the innovation engine and expands its capabilities. In the first quarter of 2025, R&D spending increased 11.6% year over year.Within Vision Care, the company launched SYSTANE PRO Preservative-Free (PF) over-the-counter eye drops in the United States, with plans for a broader rollout in 2026. Alcon also made the U.S. debut of Voyager DSLT, a new first-line laser treatment for glaucoma. In April, the company also launched the UNITY Vitreoretinal Cataract System (VCS), a combined console for both vitreoretinal and cataract surgery, and Unity CS, a standalone cataract system (CS).Downsides for AlconPersistent Macroeconomic Pressure: Alcon’s operations are exposed to shifting economic and financial environments in many countries. Ongoing conflicts in regions like the Middle East, along with unpredictable political and social conditions, particularly in emerging markets, could disrupt the global supply chain and increase the cost of international transactions. Moreover, the current trade environment is extremely volatile, with the imposition of trade tariffs, sanctions or other restrictions in effect. ALC anticipates the current tariffs to increase the cost of sales by approximately $80 million for the full year. Image Source: Zacks Investment ResearchTough Competitive Landscape: The ophthalmology industry is highly competitive, and Alcon faces intense competition in both surgical and vision care businesses. The competitors range from large manufacturers with multiple business lines to small manufacturers that offer a limited range of specialized products. Moreover, at times, pharmaceutical companies offer alternative medical therapies that can potentially disrupt core elements of their business. If Alcon is unable to keep pace with innovation, its market position could be affected.ALC Stock Estimate Trend The Zacks Consensus Estimate for 2025 earnings per share has moved south 1% to $3.11 in the past 30 days.The Zacks Consensus Estimate for 2025 revenues is pegged at $10.44 billion, suggesting a 6.1% rise from the year-ago reported number.Key PicksSome better-ranked stocks in the broader medical space are Align Technology ALGN, Hims & Hers Health HIMS and Cencora COR. Align Technology has an estimated long-term earnings growth rate of 11.2% compared with the industry’s 9.9% rise. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Its shares have lost 27.7% compared with the industry’s 3.3% decline in the past year.ALGN sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Hims & Hers Health, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 1.3% against the industry’s -10.1%. Shares of the company have surged 129.7% compared with the industry’s 35.9% gain. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched on one occasion and missed on another, the average surprise being 2.8%.Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry’s 3.8%. Shares of the company have rallied 25.9% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Align Technology, Inc. (ALGN): Free Stock Analysis Report Alcon (ALC): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks