Topic: How To Invest

Power Growth Investor Hotline – Friday, August 23, 2024

Article Excerpt

ALCON INC., $96.09, is a buy. The company (symbol ALC in New York) is the world’s biggest eye-care firm. Specifically, it’s the leader in ocular surgical supplies and No. 2 in contact lenses. While Alcon is based in Switzerland, it is headed by an American, reports its results in U.S. dollars, and gets 40% of its sales in that market. It also generates 25% of its overall revenues from emerging markets, one of the highest percentages among industry rivals. In the quarter ended June 30, 2024, Alcon’s revenue rose 3.3%, to a record $2.48 billion from $2.40 billion. Revenue benefited from continued recovery across international markets, but it was also hurt by negative foreign currency movements due to the high U.S. dollar. That cut the contribution of foreign sales. Without the currency effect, revenue rose 6%. Per-share earnings in the third quarter, excluding one-time items, rose 7.2%, to $0.74 from $0.69. Meanwhile, Alcon spends a high 10% of its sales on research, which…