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This Week’s Stock Picks & BNN Top Picks Summary: NKE-N, CSU-T and 23 Stock and 1 ETF Top Picks (Mar 08-14)Moody’s downgrade pressures stocksTSX and Dow gain for the weekThis summary was created by AI, based on 18 opinions in the last 12 months.
Experts are generally bullish on Zoetis Inc, citing its strong position in the animal healthcare market, consistent growth, and promising pipeline of products. However, some caution is advised due to the stock's high valuation and recent weak performance. Overall, the company is seen as a long-term growth opportunity with potential for increased shareholder value.
That conversion metric is a good one. Transitioning some drugs, so growth has slowed, impacting free cashflow. Increase in R&D taking up capital. New drugs in pipeline. Story still stands. Good value compounder over time.
Their last quarter was weak, but he thinks it's a one-off event. Be believes in the CEO and company long term.
Stock's done well, especially with recent rally. For new money, wait for pullback, and we'll get that eventually. Great products, especially launch of drug for canine arthritic pain. Pet division is somewhat recession-resistant.
It has two parts in animal healthcare: livestock and pet care and it is the second part which has done very well. The drugs component has advantages over regular pharma companies and there are great products in the pipelines. There are only two other big players and Zoetis is the biggest of the three.
Likes their growth. Spending on pets remains steady, a plus. But the PE is 35x, so no.
Spinoff from Pfizer in animal health.
Pet spending on the rise.
Current valuation too high. Wait before buying.
Strong business overall.
It is in the animal heath care business with two divisions: livestock and pet care which is the biggest division with lots of growth. Insurance is not very involved in the pet care business, so is not as powerful a component. Also drugs for animals generally get faster approval. Buy now on this pullback.
Industry leader in pet and livestock space. Grows about 8% a year, industry average is 5%. Great leadership. 40% EBITDA margins. Growth flows to the bottom line, really nice free cashflow.
Never gets cheap, but you want the exposure for the long term. Stronger pricing power than traditional pharma, doesn't have the competition from generics. Yield is 0.77%.
Pet segment will continue to grow and livestock will come back online, boosting earnings. Good growth business. Great drug pipeline over the next few years.
ZTS has demonstrated consistent, stable and recurring revenue growth, and is now trading at a 30.3X forward P/E, which has come down from its peak of ~39X in 2020. It has shown great margin expansion over the years and it uses all of its free cash flows and more to repurchase shares and issue a dividend. The balance sheet is OK, and it has a decent history of beating earnings estimates. A lot of the value in ZTS is driven by its combination of margin expansion and aggressive share buyback plan. We would be comfortable with the name over a 3 to 5 year horizon due to its strong free cash flow generation, shareholder-friendly management team, and strong margins, but it does trade at a premium valuation and its balance sheet could be stronger. We would be comfortable averaging into ZTS over time.
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They lead in pets' health. It thrived during Covid, but so did the PE, so rising rates have impacted them. However, pet ownership remains strong and even getting younger with more millennials buying pets. Clinics are open now. Spending per visit is up. They cover 8 species. Drug development for pets is shorter with less competition and longer shelf life. A new growth drug tackles ticks and fleas, and will launch a painkiller for dogs that looks promising.
(Analysts’ price target is $209.69)Livestock business grows at 5%, pet business has grown like gangbusters. Great products in pipeline, great chance to grow business. Great R&D.
It is a higher growth name and is the world's largest player in animal care. He still likes it - people still spend money on pharmaceuticals even in a downturn.
Long owned this. A great pipeline of products in their pet business. Fine balance sheet. People spend $3,000 annually on their pet. Their livestock business will come back. This did well during Covid, but shares fell back after. He expects strong quarters of growth ahead.
Zoetis Inc is a American stock, trading under the symbol ZTS-N on the New York Stock Exchange (ZTS). It is usually referred to as NYSE:ZTS or ZTS-N
In the last year, 15 stock analysts published opinions about ZTS-N. 14 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Zoetis Inc.
Zoetis Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Zoetis Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
15 stock analysts on Stockchase covered Zoetis Inc In the last year. It is a trending stock that is worth watching.
On 2024-03-18, Zoetis Inc (ZTS-N) stock closed at a price of $170.69.
We select ZTS, the manufacturer of livestock and companion animal pharmaceuticals as a TOP PICK. Quarterly cash flow is growing, while shares are bought back. It has a strong market position, confirmed by its 49% ROE. Its modest dividend is supported by a payout ratio of 30% of cash flow. Animal care is a certain and growing sector. We recommend setting a stop-loss at $140, looking to achieve $226 — upside potential of 29%. Yield 0.9%
(Analysts’ price target is $225.85)