Is Zoetis Stock a Good Investment?

Zoetis Investment Advice

  ZTS
To provide specific investment advice or recommendations on Zoetis Inc stock, we recommend investors consider the following general factors when evaluating Zoetis Inc. This will help you to make an informed decision on whether to include Zoetis in one of your diversified portfolios:
  • Examine Zoetis' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Zoetis' leadership team and their track record. Good management can help Zoetis navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Zoetis' business and its evolving consumer preferences.
  • Compare Zoetis' performance and market position to its competitors. Analyze how Zoetis is positioned in terms of product offerings, innovation, and market share.
  • Check if Zoetis pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Zoetis' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Zoetis Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Zoetis Inc is a good investment.
 
Sell
 
Buy
Strong Hold
Macroaxis provides trade recommendation on Zoetis to complement and cross-verify current analyst consensus on Zoetis Inc. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Zoetis Inc is not overpriced, please check out all Zoetis Inc fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that Zoetis Inc has a price to earning of 43.89 X, we strongly advise you to confirm Zoetis Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Market Performance

ModestDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Zoetis Stock

Researching Zoetis' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 96.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.63. Zoetis Inc recorded earning per share (EPS) of 5.1. The entity last dividend was issued on the 18th of July 2024.
To determine if Zoetis is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Zoetis' research are outlined below:
Over 96.0% of the company outstanding shares are owned by institutional investors
On 4th of September 2024 Zoetis paid $ 0.432 per share dividend to its current shareholders
Latest headline from seekingalpha.com: Zoetis declares 0.432 dividend

Zoetis Quarterly Good Will

2.74 Billion

Zoetis uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Zoetis Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Zoetis' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
13th of February 2024
Upcoming Quarterly Report
View
2nd of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
13th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Zoetis' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Zoetis' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2016-02-16
2015-12-310.390.430.0410 
2015-05-05
2015-03-310.370.410.0410 
2015-02-11
2014-12-310.360.40.0411 
2014-11-04
2014-09-300.370.410.0410 
2017-05-04
2017-03-310.480.530.0510 
2016-08-03
2016-06-300.440.490.0511 
2015-08-04
2015-06-300.380.430.0513 
2016-11-02
2016-09-300.460.520.0613 

Know Zoetis' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Zoetis is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zoetis Inc backward and forwards among themselves. Zoetis' institutional investor refers to the entity that pools money to purchase Zoetis' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Wells Fargo & Co2024-06-30
6.5 M
Northern Trust Corp2024-06-30
5.8 M
Norges Bank2024-06-30
M
T. Rowe Price Associates, Inc.2024-06-30
4.8 M
Nuveen Asset Management, Llc2024-06-30
4.8 M
Goldman Sachs Group Inc2024-06-30
4.7 M
Bank Of New York Mellon Corp2024-06-30
4.7 M
Fmr Inc2024-06-30
4.6 M
Unisphere Establishment2024-06-30
4.5 M
Vanguard Group Inc2024-06-30
41.2 M
Blackrock Inc2024-06-30
36.8 M
Note, although Zoetis' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Zoetis' market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 86.21 B.

Market Cap

34.02 Billion

Zoetis' profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.23  0.12 
Return On Capital Employed 0.25  0.15 
Return On Assets 0.16  0.17 
Return On Equity 0.47  0.32 
The company has Net Profit Margin of 0.26 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.38 %, which entails that for every 100 dollars of revenue, it generated $0.38 of operating income.
Determining Zoetis' profitability involves analyzing its financial statements and using various financial metrics to determine if Zoetis is a good buy. For example, gross profit margin measures Zoetis' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Zoetis' profitability and make more informed investment decisions.

Zoetis' Earnings Breakdown by Geography

Please note, the imprecision that can be found in Zoetis' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Zoetis Inc. Check Zoetis' Beneish M Score to see the likelihood of Zoetis' management manipulating its earnings.

Evaluate Zoetis' management efficiency

Zoetis Inc has Return on Asset of 0.1441 % which means that on every $100 spent on assets, it made $0.1441 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4889 %, implying that it generated $0.4889 on every 100 dollars invested. Zoetis' management efficiency ratios could be used to measure how well Zoetis manages its routine affairs as well as how well it operates its assets and liabilities. Return On Assets is likely to gain to 0.17 in 2024, whereas Return On Tangible Assets are likely to drop 0.12 in 2024. At this time, Zoetis' Intangible Assets are comparatively stable compared to the past year. Net Tangible Assets is likely to gain to about 336.9 M in 2024, whereas Non Current Assets Total are likely to drop slightly above 5.6 B in 2024.
Last ReportedProjected for Next Year
Book Value Per Share 10.82  11.36 
Tangible Book Value Per Share 1.94  2.04 
Enterprise Value Over EBITDA 26.91  20.13 
Price Book Value Ratio 18.22  13.07 
Enterprise Value Multiple 26.91  20.13 
Price Fair Value 18.22  13.07 
The analysis of Zoetis' management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Zoetis' future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Zoetis Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0091
Forward Dividend Yield
0.0091
Forward Dividend Rate
1.73
Beta
0.886

Basic technical analysis of Zoetis Stock

As of the 11th of October 2024, Zoetis maintains the Market Risk Adjusted Performance of 0.2401, mean deviation of 0.9321, and Downside Deviation of 1.09. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Zoetis Inc, as well as the relationship between them. Please check out Zoetis Inc treynor ratio, and the relationship between the variance and potential upside to decide if Zoetis Inc is priced fairly, providing market reflects its latest price of 190.08 per share. Given that Zoetis Inc has jensen alpha of 0.0841, we strongly advise you to confirm Zoetis Inc's prevalent market performance to make sure the company can sustain itself at a future point.

Zoetis' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Zoetis insiders, such as employees or executives, is commonly permitted as long as it does not rely on Zoetis' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Zoetis insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Zoetis' Outstanding Corporate Bonds

Zoetis issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Zoetis Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Zoetis bonds can be classified according to their maturity, which is the date when Zoetis Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Zoetis' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Zoetis' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Zoetis' intraday indicators

Zoetis intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Zoetis stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Zoetis Corporate Filings

8K
10th of October 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F4
8th of October 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
F3
12th of September 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
26th of June 2024
Other Reports
ViewVerify
Zoetis time-series forecasting models is one of many Zoetis' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Zoetis' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Zoetis Stock media impact

Far too much social signal, news, headlines, and media speculation about Zoetis that are available to investors today. That information is available publicly through Zoetis media outlets and privately through word of mouth or via Zoetis internal channels. However, regardless of the origin, that massive amount of Zoetis data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Zoetis news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Zoetis relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Zoetis' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Zoetis alpha.

Zoetis Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Zoetis can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Zoetis Inc Historical Investor Sentiment

Investor biases related to Zoetis' public news can be used to forecast risks associated with an investment in Zoetis. The trend in average sentiment can be used to explain how an investor holding Zoetis can time the market purely based on public headlines and social activities around Zoetis Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Zoetis' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Zoetis and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Zoetis news discussions. The higher the estimate score, the more favorable the investor's outlook on Zoetis.

Zoetis Corporate Directors

William SteereIndependent DirectorProfile
Linda RhodesIndependent DirectorProfile
Frank DAmelioIndependent DirectorProfile
Robert ScullyIndependent DirectorProfile

Already Invested in Zoetis Inc?

The danger of trading Zoetis Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Zoetis is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Zoetis. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Zoetis Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

Additional Tools for Zoetis Stock Analysis

When running Zoetis' price analysis, check to measure Zoetis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zoetis is operating at the current time. Most of Zoetis' value examination focuses on studying past and present price action to predict the probability of Zoetis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zoetis' price. Additionally, you may evaluate how the addition of Zoetis to your portfolios can decrease your overall portfolio volatility.