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Investor Insights

This summary was created by AI, based on 17 opinions in the last 12 months.

Zoetis Inc (ZTS-N) is a global leader in the animal health industry with a strong market position and a focus on both livestock and pet care. The company has a long history of around 65 years and was spun off from Pfizer 10 years ago. Despite a recent pullback, experts believe that the stock offers an attractive opportunity for long-term investors. Zoetis continues to invest in R&D, has a strong product pipeline, and demonstrates consistent revenue growth. With potential for growth in the pet care sector and a new pipeline of drugs, the company remains a strong investment option, albeit at a premium valuation.

Consensus
Positive
Valuation
Fair Value
PAST TOP PICK
Zoetis Inc
(A Top Pick Jun 13/23, Up 6%)

A bit disappointing. Headwind from near-term, cyclical pressures as economy weakens and vet visits decline. Company sees itself as defensive -- people prioritize their pets, aging population, younger generation having pets instead of children. Competition on drugs, adverse press to dog pain management drug. Still likes longer, secular trend.

Consumer Products
TOP PICK
Zoetis Inc

2/3 pet pharma, 1/3 livestock. Time to market is lower than for human pharma, not as much generic competition. Overhang from negative press about unwanted effects from painkillers -- anecdotal, not based on data. Good growth going forward. Yield is 1%.

(Analysts’ price target is $206.40)
Consumer Products
BUY
Zoetis Inc

Livestock has come back since Covid plus, as people become wealthier, they eat more protein. Pet side is going like gangbusters. Lots of products in pipeline. Incredible run during Covid, now taking a break. Will continue to do well.

Consumer Products
TOP PICK
Zoetis Inc

Pet division is about 2/3 of revenue, livestock makes up the rest. Around for 65 years, spun off from PFE 10 years ago. Animal health industry has very little generic competition, so product life tends to be over 25 years. Leading share globally. Invests in R&D. Pullback is attractive opportunity. Yield is 1%.

(Analysts’ price target is $217.14)
Consumer Products
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Zoetis Inc
Stockchase Research Editor: Michael O’Reilly

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)
Consumer Products
BUY
Zoetis Inc
Net income to free cashflow conversion went down.

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.

Consumer Products
WEAK BUY
Zoetis Inc

Their last quarter was weak, but he thinks it's a one-off event. Be believes in the CEO and company long term.

Consumer Products
BUY ON WEAKNESS
Zoetis Inc

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.

Consumer Products
PAST TOP PICK
Zoetis Inc
(A Top Pick Dec 22/22, Up 22%)

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.

Consumer Products
DON'T BUY
Zoetis Inc

Likes their growth. Spending on pets remains steady, a plus. But the PE is 35x, so no.

Consumer Products
BUY ON WEAKNESS
Zoetis Inc

Spinoff from Pfizer in animal health.
Pet spending on the rise.
Current valuation too high. Wait before buying.
Strong business overall.

Consumer Products
PAST TOP PICK
Zoetis Inc
(A Top Pick Oct 17/22, Up 24%)

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.

Consumer Products
TOP PICK
Zoetis Inc

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%.

(Analysts’ price target is $214.62)
Consumer Products
PAST TOP PICK
Zoetis Inc
(A Top Pick Aug 29/22, Up 22%)

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. 

Consumer Products
BUY ON WEAKNESS
Zoetis Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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Consumer Products
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Zoetis Inc(ZTS-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 10

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 11

Stockchase rating for Zoetis Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Zoetis Inc(ZTS-N) Frequently Asked Questions

What is Zoetis Inc stock symbol?

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

Is Zoetis Inc a buy or a sell?

In the last year, 11 stock analysts published opinions about ZTS-N. 10 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.

Is Zoetis Inc a good investment or a top pick?

Zoetis Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Zoetis Inc.

Why is Zoetis Inc stock dropping?

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.

Is Zoetis Inc worth watching?

11 stock analysts on Stockchase covered Zoetis Inc In the last year. It is a trending stock that is worth watching.

What is Zoetis Inc stock price?

On 2024-06-13, Zoetis Inc (ZTS-N) stock closed at a price of $171.32.