Zoetis (ZTS) Stock Drops to Historic Low, Future Turnaround Expected
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Stock Decline: Zoetis has seen its stock rise 480% since going public, but it has recently slid nearly 40%, reflecting underwhelming quarterly performances against a stretched valuation, with the current P/E ratio at a historic low of 21.
- R&D Potential: The company anticipates at least one major market approval annually over the next several years, with 12 new therapies having blockbuster potential, indicating a robust R&D pipeline.
- Market Opportunity: Zoetis's core R&D markets for chronic kidney failure, oncology, and cardiology are expected to represent a $5 billion market opportunity, compared to its annual sales of $9.3 billion, underscoring its leadership in the animal healthcare sector.
- Sustained Growth: Despite the stock decline, Zoetis has achieved an 8% annual sales growth since 2013, and it is expected to maintain this momentum, especially as the global animal healthcare market is projected to grow by 5% to 6% annually.
Analyst Views on ZTS
Wall Street analysts forecast ZTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZTS is 154.20 USD with a low forecast of 130.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 125.080
Low
130.00
Averages
154.20
High
200.00
Current: 125.080
Low
130.00
Averages
154.20
High
200.00
About ZTS
Zoetis Inc. is a global animal health company. The Company is focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests and precision animal health. The Company operates through two segments: the United States (U.S.) and International. Within each of these operating segments, it offers a diversified product portfolio, including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics, for both companion animal and livestock customers. It directly markets its products in approximately 45 countries across North America, Europe, Africa, Asia, Australia and South America. The Company is engaged in commercializing products across eight species: dogs, cats and horses (collectively, companion animals) and cattle, poultry, swine, fish and sheep (collectively, livestock).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
