Zoetis: Upward trend before continuation

Last Updated: 20. Februar 2024By

In the USA, the reporting season is now largely over. The figures of the heavyweights are available. Today, I would like to focus on a company that is not on everyone’s lips. I am talking about Zoetis.

You don’t know the company? You’re certainly not the only one. Today, I want to change that and introduce the company to you in more detail. The stock is worth a look after a longer consolidation.

Zoetis: Leading animal health company Zoetis is largely unknown in Germany. With a market value of $86 billion, the company listed in the S&P 500 is anything but a small fish. Currently, only five of the 40 DAX companies have a higher market value.

Zoetis is the world’s largest animal health company. The company was formed in New Jersey in early 2013 when pharmaceutical giant Pfizer spun off its animal health division and brought it to the stock market as an independent company. In mid-2013, Pfizer also sold its remaining shares, releasing Zoetis into independence. The stock has been listed on the S&P 500 since then.

The US company develops, produces, and markets veterinary vaccines and medicines for livestock and companion animals. The product range includes anti-infectives, vaccines, parasiticides, feed additives, and medicinal feed, as well as other pharmaceutical products. In addition to the offerings for livestock and companion animals, the company also provides diagnostic and genetic services, such as immune diagnostics and genetic testing.

Zoetis aims for another record profit A few days ago, the US company released its quarterly results. In the fourth quarter of 2023, revenues grew by 8% to $2.21 billion. Net income increased by 15% to $525 million. Adjusted for one-time effects, earnings amounted to $1.24 per share. This fell short of earnings expectations. Analysts had expected earnings of $1.32 per share and revenues of $2.19 billion.

For the full year 2023, sales rose by 6% to $8.54 billion. Net income also reached a new record, growing by 11% to $2.34 billion. This continues the industry leader’s years-long growth trend in the animal health sector. Within five years, Zoetis has increased its sales by 46%. Net income has even grown by 70% in this period.

The outlook for the new fiscal year 2024 also convinced investors. Management is expecting an increase in sales of up to 8% to $9.075 billion to $9.225 billion. Adjusted earnings per share are expected to increase by up to 10% to $5.74 to $5.84.

Source: www.aktienscreener.com

Upward trend ready to continue The Zoetis stock has been moving in a steady upward trend for years, which has been paused for some time now. Compared to the all-time high of $249 in September 2021, the stock price had halved in the meantime, but is now on its way back up.

The round $200 mark is providing resistance, which the stock has struggled with before and after the turn of the year. If this can be overcome on the next attempt, the dam is likely to burst. In this case, the Zoetis stock is expected to target its all-time high from the fall of 2021 at $249 in the medium term.

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