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NYSE:ZTS

Zoetis Inc (ZTS)

78.70
-0.01 (0.01%)
as of Jun 18, 2026, 11:45:32 pm Market Open.
106 watching
0
TOP PICK
Leading player in animal health. Likes healthcare, especially in higher interest rate environment. Growth in pet companion side. Pet ownership demographic is getting younger, and they spend more. R&D cycle is less onerous than for humans, patent life is longer, no strong generic competitor. Expects 10% revenue growth, double-digit earnings growth. Yield is 0.69%. (Analysts’ price target is $245.73)
PAST TOP PICK
(A Top Pick Mar 04/21, Up 34%) Great business that will continue to grow. Animal healthcare. Tough recently, but will get back to previous levels in next couple of years. No generic drugs to compete, and they're easier to bring to market. 2B in free cashflow, great balance sheet. Great products in pipeline. He's buying here.
TOP PICK
World's largest in animal health. Dominant player. Petcare (tremendous growth) and livestock (low growth, low margin). Nothing has fundamentally changed in its business for medium-long term growth. Caught up in the macro rotation. Expanding diagnostics business over next 1-2 years. You pay up for it, but unique position. Yield is 0.65%. (Analysts’ price target is $245.54)
BUY ON WEAKNESS
It has pulled back 10% YTD. It trades at a premium PE given its unique positioning in animal healthcare; it executes very well. She likes this sector. She's been adding shares during this pullback.
COMMENT
Fine company that was spun out of Pfizer for the companion animal field. He bought it as an IPO but doesn't own now. It is a defensive growth stock and as mentioned before, this could become a source of cash for some investors who want to buy cyclicals. Therefore be careful about entry points. The fundamentals have not changed and the companion animal area is growing quickly. He is also bullish on agriculture.
BUY ON WEAKNESS
She added on the recent pullback. Growing nicely. Patents on animal healthcare drugs are much longer than those for humans. Pet companion segment continues to grow. Younger demographics spend more on their pets.
TOP PICK
Animal health. 2/3 of the business comes from companion animals. Interesting secular growth area in consumer discretionary. Grew business very nicely. Earnings growing mid-teens. A theme that's not going away. Great innovation pipeline. Yield is 0.49%. (Analysts’ price target is $221.39)
TOP PICK
Leading player in animal health. Companion animals segment is more attractive than the livestock side. Millennials spend more on pets and pay more attention to their health. Attractive growth rate. Product life cycle is much longer, competition from generics is less. Potential in EMs. Well positioned in an attractive sector. Yield is 0.50%. (Analysts’ price target is $219.52)
BUY
Livestock had a tough year in 2020, grows about 5%. But that's coming back. As people get wealthier, they eat more protein. Pet care benefits from branded drug pricing power, good growth over next several years. Not many competitors. Great free cashflow growth, great balance sheet, good product pipeline. Great story for the long term.
PAST TOP PICK
(A Top Pick Jun 26/20, Up 40%) Still buying it here. Pandemic has slowed livestock segment. Pet side has been growing like gangbusters. Easy to bring product to market, not a lot of insurance, not many generics. Will continue to see growth. Free cashflow, great balance sheet, executes well.
TOP PICK
She recently bought this. She likes the animal healthcare industry, half/half in pets and livestock. They hold the leading market share in animal healthcare with over 300 product lines. They've been around for 65 years with a deep sales force. Covid increased pet ownership, including more Millennials who spend more on pets. Livestock is seeing good growth in China and Brazil. China is rebuilding their herd after swine flu, and ZTS develops medicines here. With animal health, generics are less an issue than human health. Well-positioned with a good balance sheet. (Analysts’ price target is $198.82)
BUY
It's had a strong run during Covid, though it's perceived as a pandemic stock. Their livestock division has hurt because restaurants are closed, so there's less demand. This division grows only at 5% anyway, but there's higher growth in their pets division. The average pet costs $3,000 annually in food and medical supplies/services. Bringing such products to market is faster than for humans, and ZTS is bringing such products to market in the next little while. The stock is taking a breather here, but he continues to buy it and it will grow nicely in coming years.
TOP PICK
Animal care plus livestock. Livestock is not growing as quickly as last year, but will as protein consumption grows in developing countries. Pet business really strong this year. Drugs come to market sooner, and not many generics. Great demographic and growth story. Yield is 0.67%. (Analysts’ price target is $186.31)
WAIT
He took profits. Makes sense long-term. Valuation is getting heavy at 36x earnings, for an EPS growth rate of 11-12%. A lot of money has gone into biotech, so this has suffered. If the valuation came down, he'd revisit.
BUY
They report Tuesday. He expects another winning quarter for this pet stock. He likes the pet healthcare business.
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