Here's Why Zoetis (ZTS) is a Strong Growth Stock

Zacks
2024-12-13

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Zoetis (ZTS)

Parsippany, NJ-based Zoetis Inc. came into existence following Pfizer’s decision to spin off its animal health business. The entity started trading on the NYSE on Feb 1, 2013, under the name Zoetis. The company is a leader in the animal health space, which focuses on livestock and companion animals in eight major product categories: vaccines, anti-infectives, parasiticides, dermatology, other pharmaceutical products, pain and sedation, medicated feed additives and animal health diagnostics. Zoetis has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).

ZTS boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 10.9% year-over-year for 2024, while Wall Street anticipates its top line to improve by 8.4%.

Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.07 to $5.90 per share. ZTS boasts an average earnings surprise of 2.3%.

Looking at cash flow, Zoetis is expected to report cash flow growth of 6.7% this year; ZTS has generated cash flow growth of 10% over the past three to five years.

ZTS should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

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