A look at Zoetis
Headquartered in Parsippany, New Jersey, Zoetis (ZTS) is one of the largest pharmaceutical companies that produce drugs and vaccinations for animals. It operates in more than 70 countries worldwide. The products and services offered by Zoetis are classified into farm animal products, companion animal products, animal diagnostics, and animal genetics.
Stock price performance
Zoetis (ZTS) stock has risen ~17.3% in 2Q17, while it has risen ~15.4% year-to-date as of July 7, 2017.
Wall Street analysts estimate that Zoetis stock has the potential to rise ~5.7% over the next 12 months. Analyst recommendations show a 12-month target price of $65.31 per share compared to the last price of $61.79 on July 6, 2017.
There are 20 analysts tracking Zoetis stock. Of those, 15 analysts are recommending a “buy,” while five are recommending a “hold.” The consensus rating for Zoetis stands at 1.9, which represents a “strong buy” for long-term investors and momentum investors.
Analysts’ revenue estimates
Zoetis’s revenues are mainly driven by the strong performance of companion animal and farm animal products.
Wall Street analyst estimates show revenues of $1.3 billion in 2Q17, which is a ~4.7% rise compared to 2Q16, and EPS (earnings per share) of $0.53 for the quarter.
To divest the company-specific risks, you can consider the iShares US Pharmaceuticals (IHE), which holds 4.1% of its total assets in Zoetis. IHE also holds 9.4% in Johnson & Johnson (JNJ), 5.6% in Bristol-Myers Squibb (BMY), and 6.1% in Eli Lilly (LLY).