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Investor Insights

This summary was created by AI, based on 13 opinions in the last 12 months.

Zoetis Inc. (ZTS) is a leading player in the animal health industry, consistently praised for its strong product offerings in both companion animals and livestock pharmaceuticals. Analysts project solid sales and earnings growth over the next two years, with emphasis on the blockbuster potential of its controversial dog arthritis drug, Librela, which remains under scrutiny but is expected to drive future revenues. The company enjoys a robust market position, evidenced by its low competition, high return on equity, and decent dividend yield of around 1%. While there are concerns regarding competition and potential negative press affecting some products, the long-term growth trend in pet ownership and livestock demand makes Zoetis a compelling investment for those looking at resilient sectors amidst economic uncertainties.

Consensus
Buy
Valuation
Overvalued
PARTIAL BUY
Stockchase Insights Stockchase Insights on 5i Research 19/02/2025 at 08:45pm GLOBAL EQUITIES unlockUnlockRating Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ZTS looks 'decent' with good growth expected still and a reasonable valuation. Sales and earnings are expected to show growth over the next two years. We think it is buyable and would prefer it to the much smaller and riskier PAHC. 
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Mar 14/24, Up 4.6%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ZTS has triggered its stop at $181.  To remain disciplined, we recommend covering the position at this time.  

HOLD
Controversial dog arthritis drug.

Librela's actually been on the market for a while, launched in Europe before US. Debate whether it helps or does it cause adverse effects. Company still tags very strong growth for this drug, vets are still recommending it. Reports in a week or two, so we'll get more visibility. If growth stalls on this one, a negative for the stock. So far, things seem on track.

Librela is important, as company thinks it can be a blockbuster. Their other drugs are doing quite well, pipeline is healthy.

DON'T BUY

Companion pets are a big thing. Growing need for protein from livestock. Above 200-day MA, but that's moving sideways. Trendlines are not fantastic. Trading at 31x, with 10% growth rate, PEG of 3, a bit expensive.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Mar 14/24, Up 11%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ZTS is progressing well.  To be disciplined, we recommend trailing up the stop (from $161) to $181 at this time.  

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Mar 14/24, Up 5.2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ZTS is progressing well.  To remain disciplined, we recommend trailing up the stop (from $140) to $161 at this time.  

BUY

Likes the industry in general. A leader. Vets like its products. Not a lot of generic competition. Diversified in types of care. Studies show that pet spending is resilient even during slowdowns. Attractive entry point.

DON'T BUY

Shares are declining because they now face competition. It's no longer a one-horse race.

PAST TOP PICK
(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.

TOP PICK

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)
BUY

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.

TOP PICK

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)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
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)
BUY
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.

WEAK BUY

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

Showing 1 to 15 of 93 entries

Zoetis Inc(ZTS-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 8

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 2

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. 8 analysts recommended to BUY the stock. 2 analysts 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 2025-03-14, Zoetis Inc (ZTS-N) stock closed at a price of $161.26.