A look at Zoetis
Headquartered in Parsippany, New Jersey, Zoetis (ZTS) is one of the largest pharmaceutical companies, producing drugs and vaccines for animals. Zoetis has operations in more than 70 countries worldwide. It has segregated its business segments based on the following product categories: companion animal products, farm animal products, animal diagnostics, and animal genetics.
The above chart shows revenues and EPS (earnings per share) for Zoetis over the last eight quarters and estimates for 3Q17.
Zoetis stock has risen 2.2% in 3Q17. It has risen ~22.5% year-to-date as of October 20, 2017.
Wall Street analysts estimate that the stock has the potential to rise ~2.8% over the next 12 months. Their recommendations show a 12-month target price of $67.41 per share compared to the last price of $65.58 per share on October 19, 2017.
There are 21 analysts tracking Zoetis stock. Fourteen of them recommend a “buy,” and seven recommend a “hold.” The consensus rating for Zoetis stands at 2.0, which represents a “strong buy” for long-term investors and momentum investors.
Analysts’ revenue estimates
Zoetis’s revenues are mainly driven by the strong performances of companion animal products and farm animal products.
Wall Street analysts estimate revenues of $1.3 billion in 3Q17, a ~6.6% rise compared to 3Q16, and EPS of $0.62.
To divest the company-specific risks, investors can consider ETFs such as the VanEck Vectors Pharmaceutical ETF (PPH), which holds 4.6% of its total assets in Zoetis (ZTS). PPH also holds 5.0% in Merck & Co. (MRK), 6.3% in AbbVie (ABBV), and 4.6% in Eli Lilly (LLY).