Latest news with #Librela
Yahoo
5 days ago
- Business
- Yahoo
Zoetis Inc. (ZTS): A Bull Case Theory
We came across a bullish thesis on Zoetis Inc. (ZTS) on Best Anchor Stocks' Substack. In this article, we will summarize the bulls' thesis on ZTS. Zoetis Inc. (ZTS)'s share was trading at $161.97 as of 22nd May. ZTS's trailing and forward P/E were 29.08 and 26.18 respectively according to Yahoo Finance. Syda Productions/ Zoetis (ZTS) reported mixed earnings that triggered a 5% sell-off, though the stock partially recovered the next day. While headline numbers were not disastrous, underlying concerns justified the reaction. Operational revenue grew 9%, but reported revenue rose just 1% due to FX headwinds and the recent divestiture of the low-margin MFA business, which ironically improved margins—gross margin expanded by 140 bps and operating margin by 150 bps. The company's capital return strategy remains robust, with buybacks accounting for 83% of free cash flow over the past year and a 2.4% year-over-year reduction in share count, boosting EPS growth above net income. Despite this, organic growth decelerated slightly, largely due to weaker-than-expected adoption of Librela, Zoetis' osteoarthritis pain monoclonal antibody. Though Librela posted 17% U.S. growth, management acknowledged slow uptake from poor awareness and macro pressures, leading to a downward revision of operational net income guidance. This is troubling, given Librela's previously expected outsized contribution to future growth and margins. However, Zoetis unveiled a new, long-acting OA pain MAB in the pipeline—administered quarterly, with fewer side effects and a distinct brand—which could reset the narrative if approved in late 2025. Meanwhile, core franchises in parasiticides and dermatology (Simparica and Apoquel) continue to post double-digit growth despite rising competition. The shift toward retail, now 21% of U.S. sales, enhances reach but slightly dilutes the vet-driven moat. Ultimately, while near-term execution challenges around Librela weigh on sentiment, Zoetis' market leadership, innovation pipeline, and structural tailwinds support a favorable long-term outlook. We have previously covered Zoetis Inc. (ZTS) in December 2024 wherein we summarized a bull thesis by Business Model Mastery on Substack. The author highlighted Zoetis (ZTS) as a top play on the booming pet care market. Since then, the company has delivered strong Q3 results, led by blockbuster osteoarthritis and dermatology treatments, retail expansion, and global growth. With rising chronic care demand and diagnostics adoption, ZTS remains a long-term compounder. Zoetis Inc. (ZTS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held ZTS at the end of the fourth quarter which was 62 in the previous quarter. While we acknowledge the risk and potential of ZTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ZTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
ABC News
22-04-2025
- Health
- ABC News
Pet owners preparing class action against osteoarthritis drug maker over dog deaths
Above Courtney Christie's fireplace is a shrine to her beloved dog, Lotte. "We were completely inseparable, she went everywhere with me — she was my great friend," she said. After the 12-year-old kelpie koolie cross started "slowing down", her vet clinic suggested a new medication which had just launched in Australia called Beransa — a monthly antibody therapy injection to alleviate osteoarthritis pain in dogs. An oil painting of Lotte, gifted to Ms Christie by her friend after the dog's death. ( ABC News: Brant Cumming ) "'Safe and side effect free' was the messaging that I got and the messaging that the clinic got," she said. But she said after the second injection, Lotte started becoming confused and lethargic, and her condition deteriorated. During the following weeks, Lotte was found to have no platelets (thrombocytopenia) and underwent a plasma infusion, steroid medication, and chemotherapy type immune therapies. "I maxed out every credit card I had, I borrowed money, and I gave her every chance to live," she said. Ms Christie said Lotte became ill in February 2024. ( Supplied: Courtney Christie ) But eventually Ms Christie had to make the difficult decision to euthanase Lotte. "I just looked down and she started haemorrhaging. She was losing blood from her back end," she said. Vets notified in United States After extensive research, she found that the US Food and Drug Administration (FDA) had issued a letter to veterinarians about adverse events reported in dogs treated with the medication, called Librela in the US and Europe. "The adverse events identified and analysed include: ataxia, seizures, other neurologic signs, including but not limited to, paresis, recumbency, urinary incontinence; polyuria, and polydipsia," the letter read. Ms Christie said Lotte ultimately had to be put down after haemorrhaging. ( Supplied: Courtney Christie ) "In some cases, death (including euthanasia) was reported as an outcome of these adverse events." After reviewing the drug, the FDA forced Zoetis to include "death" as a possible side effect on its labelling in the US. But the Australian regulator is yet to follow suit. In a statement, the Australian Pesticides and Veterinary Medicines Authority (APVMA) said it was aware of public commentary regarding adverse experiences associated with Beransa, and was seeking evidence from international regulators. It said it registered Beransa in 2022 and updated the label in August 2024 to include "the addition of rarely identified side effects", including blood disorders such as thrombocytopenia — which Lotte was diagnosed with. "The APVMA will take immediate action if we determine that there is a significant imminent threat to the Australian community," the statement read. Ms Christie started looking into Beransa when her dog died. ( ABC News: Brant Cumming ) Ms Christie also discovered that a class action had been filed in the United States, alleging the drug had been associated with "thousands of reported adverse events". She said if she had known that earlier, she never would have treated Lotte with Beransa. "It's a huge guilt, and I feel like I let her down, and I feel like I had a hand in killing my dog," she said through tears. Now, Ms Christie and a group of other pet owners around the country are seeking to launch a similar class action in Australia. Vets describe positive experience The ABC has contacted veterinary clinics around Australia, who say their experiences with Beransa have been mostly positive. "Generally, it's been a real benefit to dogs … we're not saving their lives forever, but we're giving them six to 12 months they probably never would have had," said veterinarian Andrew Spanner. His Adelaide clinic has issued about 1,200 doses, and he estimates about half of elderly dogs are being treated with Beransa. He is concerned legal action and bad reviews on social media could affect the treatment's availability. Dr Andrew Spanner with his dog, Loki. ( ABC News: Ashlin Blieschke ) "When you Google it, all you get is all the bad things, because the people who are having good experiences are just quietly going about their day, not saying anything about it," he said. He said reports side effects are impacting multiple bodily system raises alarm bells because "true adverse effects" are "quite focused". Dr Spanner said he wished it was available sooner because he would have used it to treat one of his own dogs, who was euthanased. But while he understands grief is often linked to a search for answers, he fears Beransa could be pulled from the market. Mount Barker Vet Clinic owner Digby Ambrose has been a veterinarian since 1979. ( ABC News: Ashlin Blieschke ) That sentiment is echoed by veterinarian John Carruthers. "It becomes very confusing, and it causes unnecessary stress for pet owners because there's this apparent information saying it's bad when it's not," Dr Carruthers said. "We don't expect any medication to be zero risk … with any medication, the question you have to ask before you prescribe it is what's more dangerous — the disease or the medication?" Integrative veterinarian Digby Ambrose's clinic has administered more than 1,400 doses with little to no side effects. "It's our last line of treatment … we'd like clients to have informed consent before we use this product, so we list the possible side effects and what we think the incidents may be," he said. Manufacturer backs product In a statement, Beransa's manufacturer, Zoetis said reported adverse events represented fewer than 10 occurrences per 10,000 doses. "We understand that when any dog experiences an adverse event, these statistics are a small consolation," the statement read. Beransa is a dog medication used to alleviate osteoarthritis pain and is made by Zoetis. ( ABC News: Brant Cumming ) "All medicines come with some potential risks. Pet owners should weigh the benefits of using any product against the potential risks in consultation with their veterinarian. "Since launching four years ago, Beransa has been used effectively with millions of dogs around the world, helping dogs suffering from osteoarthritis pain live with less pain and greater mobility." Pet owners advocate for better information For Ray Dalli, informed consent is exactly what he wants to see. He and his family nursed their Jack Russell terrier Daisy around the clock for 161 days, until they eventually had her euthanised. "We couldn't see any light at the end of the tunnel … we felt it was unjust, and she couldn't go through any further testing," he said. Mr Dalli also wants to be part of a class action. He meticulously documented Daisy's decline, which he claims was the result of Beransa. Ray Dalli wants drug maker Zoetis to better communicate possible side effects of Beransa. ( ABC News: Andrew Altree-Williams ) He said after Daisy was administered the drug, she started having spasms, became confused, lost weight, sought out dark corners and appeared in a "drunken state". "She would stagger, she would sway, she would fall over. It was not a slow collapse, but just, bang, I'm dead, frozen, dead," he said. " I wish I hadn't heard of the drug. " He said while Zoetis had listened to his concerns, he wished there had been communication about potential risks. "The answer is not to withdraw the drug from the market — the answer is to make people aware of it, that there are serious adverse effects," he said. Jack Russell terrier Daisy was euthanased after enduring debilitating symptoms for months. ( Supplied: Ray Dalli ) "Our dog didn't deserve this. She deserved a normal, dignified end to her life." Ms Christie added that there was evidence stating the drug had helped dogs. "[But] it should be for dogs that have exhausted every other treatment opportunity, not happy little 12-year-olds with a bit of a stiff hip," she said.
Daily Mail
22-04-2025
- Health
- Daily Mail
EXCLUSIVE Desperate pet owners are turning to this £100-a-month arthritis injection but there are fears it could KILL their dog
Heartbroken pet owners are fighting for a £100-a-month 'wonder drug' for dogs with arthritis to come with a warning after a spate of deaths linked to the medicine. Librela, also known as Solensia for cats, is a monthly injection to help relieve the pain associated with osteoarthritis in dogs and is only available on prescription. It can be purchased online for around £100 for two vials. Five-star reviews call the medicine 'liquid gold' and a 'game changer' for dogs who suffer from joint pain. Many describe their pets being able to run and play like they did as puppies after years of suffering but some owners have found their pets suffered serious adverse effects. Rebecca Hudson turned to Librela in July 2021 when her vet recommended it to treat her dog Sam's elbow dysplasia. She was told it was an 'amazing new drug' and claims she was not warned of any side effects. After three years of having injections every six months Rebecca noticed eight-year-old Sam had started walking with his back leg bowing and his foot rolling underneath him. Librela injections can be purchased online with a prescription for around £100 for two vials After three years of having injections every six months and everything going well, Rebecca noticed eight-year-old Sam had started walking with his back leg bowing and his foot rolling underneath him It took visits to three different vets before Sam's problems were taken seriously in September last year. Rebecca told MailOnline: 'The vet was extremely concerned that he could move Sam's ankle joint as far side to side as he could front to back and recommended X-rays. 'The X-rays showed the joint was destroyed and he referred us to the specialist Orthopaedic Hospital. 'The vet said his joint was completely destroyed and they did not know how he was able to walk on it. 'The bones were so crushed up together and he was obviously in a lot of pain.' Sam was kept in hospital for three days while he underwent a six-hour surgery to fuse his bones. He stopped taking Librela shortly before his operation. 'I keep crying because I feel I have poisoned him,' Rebecca said. 'The surgery was very invasive and he was in a terrible state afterwards. 'He became incontinent and was peeing all over the house, which he had never done before. 'It became so severe that he had to wear a belly band to save the soft furnishings. 'While Sam's surgeon said he cannot say for certain Librela caused this rapid onset osteoarthritis, he could not find another possible cause.' Since Sam had his last Librela injection in September Rebecca said she has seen massive changes in his behaviour which she attributes to stopping the drug. 'His leg is recovering and although he can't bend his leg, he is adapting,' she said. 'He is going to hydrotherapy and can swim well again, which is what he always enjoyed doing. LIBRELA SIDE EFFECTS The product information for all strengths of Librela Solution for Injection for Dogs was last updated on 10 December 2024. This resulted in the addition of the following adverse events: In rare cases diarrhoea, vomiting, poor muscle control, urinary incontinence, anorexia and lethargy have been reported. In very rare cases, seizures have been reported after administration of the veterinary medicinal product. The following adverse events were already listed in the product information: Injection site reaction (e.g. injection site swelling, injection site warmth), excessive thirst, excessive urination, hypersensitivity reaction, immune-mediated haemolytic anaemia and immune-mediated thrombocytopenia which can lead to an increased risk of bleeding. Source: GOV UK 'Sam is just a much more relaxed and content dog. He is enjoying his cuddles now whereas before he would never stay still enough to let you get near him.' The cost of getting Sam well again was enormous with surgeries and vet bills totalling more than £10k last year. 'Sam will never have another Librela injection,' Rebecca said. 'This major operation on his leg has been shocking to us. 'The fact that something given to treat elbow dysplasia has destroyed his hock joint is so counter intuitive I'm finding it hard to get my head round.' Librela, manufactured by animal health company Zoetis, is relatively new to the market and was only approved for use in the European Union in November 2020 and in the US in 2023. But shortly after its release in the US the Food and Drug Administration (FDA) issued a warning with side effects of the drug includes seizures, lameness, loss of muscle control and in some cases, death, including euthanasia. This came after more than 3,600 cases of side effects were reported to them between the whole of 2023 and March 2024. Despite efforts by campaigners, the same warning has not been given by the Veterinary Medicines Directorate (VMD), meaning many pet owners are unaware of the potential side effects of the drug. In December 2024 the VMD added diarrhoea, vomiting, ataxia, urinary incontinence, anorexia and lethargy as rare side effects of the medication as well as seizures in very rare cases. Prior to this update the possible side effects listed were injection site reaction, thirst, excessive irination, hypersensitivity reaction, immune-mediated haemolytic anaemia and immune-mediated thrombocytopenia, which causes an increased risk of bleeding. Tina Doo lost her 12-year-old German Shephard Snowy last November within two weeks of her taking her second Librela shot. She told MailOnline: 'The progression was so quick. She went from a heathy and happy dog to not being able to hold herself up and having no interest in anything.' Snowy was prescribed Librela after she began showing symptoms of degenerative myelopathy, a disease that affects the spinal cord in dogs, causing progressive muscle weakness and loss of coordination. Librela was offered as an alternative to oral pain relief drugs which Tina struggled to get Snowy to take. Tina said: 'When I was told by the vet that Snowy could have a monthly injection which I could administer myself, I thought it was great. 'I was told there were no side effects and was able to order it online and keep it in my fridge. 'Knowing what I know now, I do not think people should be allowed to inject it at home. There is the potential for somebody to mistakenly inject themselves which could do real damage.' Tina noticed Snowy was not able to walk as far as she used to and her legs began to knuckle every few steps. Snowy had her second, and last, injection on November 4, 2024, five weeks after her first. Tina said: 'After a few days we noticed she was started to drink more water and she would tire more easily on walks. 'She no longer asked for her walks and her appetite changed. She went from having a healthy appetite to only eating chicken.' After Snowy had a mini seizure in November Tina and her partner realised the only thing which had changed in their dog's life in the past months was Librela. They took Snowy to the vets and were told after a physical examination that she was fine. The vet said Snowy's symptoms were unlikely side effects of Librela - which Tina had began Googling and learning more about - but they decided to take her off the drug anyway. By November 20 she was refusing to eat anything and two days later she could not walk at all. 'It got to the point where she couldn't walk at all and we had to carry her outside to do her wees because she couldn't hold herself up,' she said. Her nose and gums had also begun bleeding. On November 23 Tina and her partner reluctantly made the decision to put Snowy down. She said: 'That day she was completely flat out and wouldn't sit up. 'We couldn't ask her to carry on like this.' While Tina says she will never know for certain what caused Snowy's symptoms, she says her experience is matched by many other pet owners who have given Librela to their dogs. 'People need to understand taking Librela is playing Russian Roulette with your dog's life.,' she said. 'Libela is often given to older dogs and when they die it's put down to old age. 'A lot of people don't realise Librela is what is killing them. 'There are dogs that tolerate it and for them and it gives them a new lease of life. 'But people need to be able to give informed consent, knowing that there will be a chance their dog will die. 'It should be used in cases where euthanasia is the last resort.' A Zoetis spokesperson said: 'Since launching four years ago Librela has been used effectively with millions of dogs around the world, helping dogs suffering from osteoarthritis pain live with less pain and greater mobility. 'With more than 25 million doses distributed globally, no single sign reported as an adverse event is classified as more than rare, according to the European Medicines Agency (EMA) categorization. 'We remain confident in the safety and effectiveness of Librela for controlling osteoarthritis pain in dogs, when used according to the label, and in the science, safety and regulatory rigor behind this product. 'As the world's leading animal health company, we understand that when any dog experiences an adverse event, these statistics are a small consolation. All medicines come with some potential risks. Pet owners should weigh the benefits of using any product against the potential risks in consultation with their veterinarian. 'When Zoetis receives reports of potential adverse events from pet owners or veterinarians, we take very seriously our obligation to gather as much relevant information as possible. We do this so we can ensure the ongoing safety of our products and so that we can report these events to the appropriate regulatory agency.' A VMD Spokesperson said: 'We would always advise the public to seek advice from their veterinary professional before providing medicine to their animals. 'As with all veterinary medicines in this country, we have continuously monitored Librela since it was first authorised. Data shows fewer than 15 animals have experienced side effects for every 10,000 doses of Librela sold. 'We take any reports of adverse side effects very seriously and will take action where appropriate, such as ensuring additional warnings are added to packaging or changing the way a product is used.'
Yahoo
19-04-2025
- Business
- Yahoo
A Once-in-a-Decade Opportunity: 3 Magnificent Stocks Down Between 40% and 73% to Buy Right Now
The S&P 500 has dropped 10% or more nine times since 2010, not including the current sell-off. However, the index has delivered an average return of 18% in the year following the start date of these corrections. In fact, the market was higher in eight of the last nine instances. Keeping these above-average returns in mind -- and with many stocks now trading at newly lowered valuations -- it looks like an ideal time to add to stocks. Here are three magnificent stocks trading at once-in-a-decade valuations that I'd happily buy right now. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Zoetis (NYSE: ZTS) is a leading animal healthcare company offering over 300 medicines, vaccines, and other precision health products to care for companion animals and livestock globally. Since its spin-off from Pfizer in 2013, Zoetis has delivered an annualized total return of 15%, demonstrating the market-beating potential of what might look like a steady-Eddie investment at first glance. However, after experiencing a pandemic-driven boom that saw pet adoptions and subsequent vet clinic visits skyrocket, the company's stock has declined by 39% as things normalized. Following this decline, though, Zoetis now trades at a price-to-earnings (P/E) ratio of 27 -- its lowest mark in a decade. While the market may now be more pessimistic toward Zoetis's stock than it has ever been, the company's actual operations and outlook look stronger than ever. Zoetis grew revenue and adjusted earnings per share by 11% and 17%, respectively, in 2024 and saw explosive growth in its newest growth area: helping osteoarthritis (OA) pain in dogs and cats. Librela (for dogs) and Solensia (for cats) grew sales by 80% and 20%, respectively, in 2024, as veterinarians continue to choose these products for OA pain over traditional nonsteroidal anti-inflammatory drugs that may have more side effects. With 40% of dogs experiencing OA pain at some point in their life and cats and dogs already living two years longer than they were as recently as 2012, these medicines could play a key role in keeping our aging buddies comfortable. One final bit of good news for investors: Zoetis's 1.2% dividend yield is at its highest-ever mark, and management has grown dividend payments by 18% over the last decade. Steady growth, promising growth areas, and a ballooning dividend at a decade-low valuation? I'll happily keep adding to one of my most significant holdings. Yeti (NYSE: YETI) is an increasingly popular lifestyle brand famous for its premium outdoor products and drinkware. Creating durable, high-quality goods, Yeti has developed an immensely loyal customer base of outdoor enthusiasts, whether they're surfers, fishermen, climbers, bull riders, or barbeque pit masters. After the company's stock quintupled in the three years following its 2019 initial public offering, it looked like Yeti would be the next big lifestyle brand. However, Yeti's stock has plummeted 75% from its all-time highs following a major recall of some of its coolers in 2023 and the current tariff concerns with China. However, while Yeti's stock has essentially retraced to its starting point in 2019, the company has more than doubled its sales, net income, and free cash flow (FCF) over that time. While the road to get here was bumpy, Yeti's growth prospects still look promising as it tries to grow in two key ways: by marketing to adjacent verticals and expanding internationally. Expanding into new product categories, such as cookware after acquiring Butter Pat, collaborating with creators adjacent to its core outdoor niche, and sponsoring teams in Major League Soccer and Formula 1, Yeti's audience reach grows by the day. Meanwhile, the company currently generates only 18% of its sales from outside the United States, whereas many of its athletic brand peers are closer to 40% or 50%. Though this 18% figure is significantly higher than the 2% in 2018, Yeti's 30% international sales growth in 2024 shows that the best may still be to come. Currently trading at its lowest ever P/E ratio of 13, Yeti could prove to be a steal as it shifts its drinkware production out of China. Set to make 80% of its drinkware products outside the country by year's end, investors shouldn't view Yeti as damaged goods due to the tariffs. Instead, it is one of the most beloved brands out there, with a cult-like following and a massive $300 million net cash balance available to battle with. Rapidly growing buffalo wing franchisor Wingstop (NASDAQ: WING) operates 2,154 locations in the U.S. and 359 internationally. While Wingstop delivered its 21st consecutive year of same-store sales (SSS) growth and increased its store count, sales, and net income by 16%, 36%, and 55%, respectively, in 2024, its stock price sits 49% below its 52-week highs. While this drop makes absolutely no sense at first glance, it is much more reasonable when we see that Wingstop traded above 150 times earnings at one point last year. Simply put, it was priced for perfection and barely missed the mark with its most recent results. Now trading at 59 times earnings -- far below its average of 100 -- Wingstop looks like a once-in-a-decade opportunity, in my opinion. The main reason I believe Wingstop will grow into this lofty valuation is that management expects to quadruple its store count over the long term and has the track record to back this notion. While this growth may sound like an overly ambitious goal, the company has a pipeline of over 2,000 restaurant commitments under development. This figure is the highest it has been in the company's history and nearly equals its existing store count. This massive pipeline, paired with Wingstop's long history of SSS growth, should help the company quickly outgrow this valuation. And if Wingstop's premium price tag has you wary of an investment, consider that it has averaged a P/E ratio of 100 across its publicly traded history, yet it has become a 10-bagger over that time. Before you buy stock in Zoetis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Zoetis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Josh Kohn-Lindquist has positions in Wingstop and Zoetis. The Motley Fool has positions in and recommends Pfizer and Zoetis. The Motley Fool recommends Wingstop and Yeti. The Motley Fool has a disclosure policy. A Once-in-a-Decade Opportunity: 3 Magnificent Stocks Down Between 40% and 73% to Buy Right Now was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
25-02-2025
- Business
- Yahoo
A Once-in-a-Decade Opportunity: 1 Magnificent S&P 500 Dividend Stock Down 36% to Double Up on Right Now
It is a beautiful thing when you find a feel-good stock that offers market-beating potential. A perfect example of this combination today is animal healthcare specialist Zoetis (NYSE: ZTS). Whether helping our furry friends at home, keeping livestock healthy, or doing its part to battle the bird flu outbreak that has sent egg prices sky high, Zoetis is easy to root for these days. And it has been a market-beating proposition since its 2013 initial public offering, more than quintupling investors' returns over that time. However, following a 36% drop in share price, the stock is available at a rare discount. Here are the five main reasons that have me doubling up on my position in this magnificent S&P 500 dividend stock. Zoetis creates medicines, vaccines, genetic tests, diagnostics, and precision animal health products for companion animals and livestock alike. The company is well-diversified across the animal healthcare industry. Some notable statistics: It focuses on eight core species: dogs, cats, cows, chickens, pigs, horses, fish, and sheep. It has 15 blockbuster products earning $100 million or more annually. It has more than 300 product lines. Over 2,000 new products or innovations were created in the last decade. Two-thirds of sales are generated from companion animals and one-third from livestock. 55% of its sales come from the United States and 45% internationally. 90% of its sales come from products that are No. 1 or No. 2 in their respective market share. The company has been growing faster than the overall animal healthcare industry every year since 2014 thanks to its penchant for continuous innovation. Management believes the veterinary healthcare category will grow by 5% annually through 2032 with the megatrend in the humanization of pets, giving the company a rosy outlook. Zoetis' newest blockbusters are its osteoarthritis (OA) pain treatments for dogs and cats: Librela and Solensia. These monoclonal antibodies offer improved efficacy compared to traditional non-steroidal anti-inflammatory drugs and have quickly proved to be popular among pet owners. The two OA pain treatments increased sales by 80% in 2024 (and 20% in the fourth quarter against a tougher comparable) and are already the company's fourth-largest franchise. With roughly 40% of cats and dogs getting OA in their lifetimes, Librela and Solensia will likely remain popular options among pet owners who are increasingly willing to spend more to care for their furry friends. Cats and dogs are living longer than ever, and the prevalence of OA will rise as these pets age, making Zoetis' newest blockbuster treatments even more valuable with time. Librela is currently treating only 10% of dogs with OA, so plenty of room for growth remains. Zoetis has shown an ability to recreate itself through product innovations and new treatments, and its profitability has steadily gone from good to outstanding. Its net profit margin has more than tripled since 2012, and return on invested capital (ROIC) has grown to 21%, which ranks in the top quintile of the S&P 500. Stocks with high and rising ROICs have historically outperformed their lower-ranked peers since they generate outsize profits compared to their debt and equity. This profitability creates a flywheel effect, as Zoetis can reinvest in its operations through more research and development or mergers and acquisitions, while also allowing it to reward shareholders handsomely. Thanks to its ballooning profitability, Zoetis has grown its dividend by 22% annually over the last decade. At the same time, however, the company has also reduced its total shares outstanding by 1% annually since 2014, creating my favorite "X factor" chart. These stock buybacks help juice Zoetis' earnings per share (EPS) figures since the denominator of the EPS equation (total shares) keeps shrinking over time. The shares' 36% drop in price means these stock repurchases are even more valuable because management can eliminate shares at a discount. Furthermore, even though the company's dividend yield sits at all-time highs, it requires only 32% of net income, leaving plenty of room for future increases. Currently, Zoetis trades at a price-to-earnings ratio (P/E) of 29 and a dividend yield of 1.2%. Both of these metrics are at their most attractive levels in the company's history, making this a once-in-a-decade opportunity. Its discounted price combined with a long track record of steady growth, rising profitability, and returning cash to shareholders make Zoetis my favorite S&P 500 dividend stock to double up on right now. Before you buy stock in Zoetis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Zoetis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $823,858!* Now, it's worth noting Stock Advisor's total average return is 917% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of February 21, 2025 Josh Kohn-Lindquist has positions in Zoetis. The Motley Fool has positions in and recommends Zoetis. The Motley Fool has a disclosure policy. A Once-in-a-Decade Opportunity: 1 Magnificent S&P 500 Dividend Stock Down 36% to Double Up on Right Now was originally published by The Motley Fool Sign in to access your portfolio
