Zoetis Inc

The pet medicine industry continues to grow. There are few competitors. He's recommended ZTS many times before. People spend $3K on their pets. ZTS has pricing power.

They make drugs for pets. $6.2 billion was spent in 2001 on pets and now it's over $15 billion. Each owner spend $3,000 on their pet, mostly out of pocket. The process to get a pet drug to market is faster than a drug for humans. Lots of growth. (Analysts’ price target is $135.31)

The companion animal market has grown very strongly in the developed world. This company has less exposure to livestock. They provide testing services to vets. He likes the company. He likes the long term prospects of the company but banks will do better if interest rates keep going up.

They make pharmaceuticals for pets. The action today looks like it’s breaking down. The volume looks good but there’s been a lot of selling. He would be very cautious.

(A Top Pick Nov 07/18, Up 30%) Revenue split between pet care and livestock. Owners are increasingly willing to spend money on pets. Fragmented industry. Huge margins. 20 consecutive quarters of positive earnings surprises. Good name long-term. Bit pricey, but they can catch up.

The biggest livestock and pet medicine maker in the world. They have 300 R&D projects in the works. A solid long term uptrend in place. A recent technical buy signal has him thinking now is the time to buy. Yield 0.51% (Analysts’ price target is $132.00)

People spend over $15 billion for over-the-counter drugs for their pets. There are no generic ones that compete and it's easier to bring to market (less testing) compared to meds for humans. (Analysts’ price target is $128.86)

(A Top Pick Sep 12/18, Up 37%) Healthcare for animals. 33x earnings. Industry is a high-margin business. Consumer doesn't have much pricing power. Greater global need for healthier livestock. Reported 20 consecutive quarters of positive earnings.

(A Top Pick Aug 20/18, Up 26%) Lumped into the same sector as drugs for humans. So, because this sector has been under pressure from political rhetoric, ZTS's stock price is lower than it should be. ZTS continues to do well in the livestock space due to Asian swine flu.

It's an animal healthcare company, both livestock and pets. Livestock growns along with GDP; as populations become urbanized, families consume more protein. Pets are a great growth business. There's little competition in this space to supply generic drugs for pets, and more and more people are buying pets. Owners spend $3,000 a year to maintain a pet.

Animal healthcare company. Spun out of Pfizer in 2013. From 2001 to 2018, spending on animal healthcare went from $6.2B to $15.5B. Young people all have pets. One of the great thing is that a lot of the costs are out of the pocket, not many insurances companies in the market. Not a lot of generics that compete with the drugs, and getting new drugs approved for animals is faster. Very little debt. Good growth perspective. (Analysts’ price target is $106.33)

It was too cheap because the whole pharma industry was out of favor. This whole industry is not out of favor from politicians. This has a better balance sheet, margins, and manufacturing costs. He continues to see it doing well unless something impacts livestock herds or companion animal populations.

They've been hitting it out of the park and continues to see great topline growth. He sold it because Eli Lilly spun out their business into Elanco, the #2 in animal health. There's a premium valuation on ZTS, because there's little else to get exposure to animal health. At 27x earnings, this will get hit more in a pullback.

Big producer of medicine and vaccines for livestock and pets, with revenues roughly evenly split between those two areas. Living standards are rising in developing countries, so they need vaccines for healthy livestock. Also, pet owners will pay well (vaccines) to heal their pets. (Analysts’ price target is $98.91)