ZTS - Zoetis: Don't Fret Excessively Over The Animal Healthcare Leader

2024-06-11 11:30:00 ET

Summary

• Zoetis is a leading animal healthcare company.
• In April, ZTS stock suffered a steep plunge due to negative media publicity over Librela and Solensia.
• Zoetis still expects Librela and Solensia to achieve peak sales of $1 billion globally.
• ZTS dip-buyers have helped ZTS to recover all its April losses and more, confirming its resilience.
• I argue why it doesn't make much sense to bet against the highly profitable animal healthcare leader.

Zoetis Is The Animal Healthcare Leader

Zoetis Inc. ( ZTS ) is a fundamentally strong healthcare company focusing primarily on animal health. Zoetis has a long history of delivering on its value proposition "by advancing care for animals." As a result, it has propelled ZTS into one of the world's leaders in animal health, capitalizing on its massive global scale and R&D expertise. Moreover, a relatively more fragmented market (as compared to the human health business) has also afforded Zoetis sector-leading profitability and assigned a best-in-class "A+" profitability grade. ZTS's price action has been consistently bullish, delivering a 10Y total return of almost 500%, easily outperforming the S&P 500 ( SP500 ) . However, with ZTS stock stuttering with an underwhelming 1Y total return of just 10%, is it time for dip-buyers to pounce?...

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