Latest news with #Zoetis
Globe and Mail
3 days ago
- Business
- Globe and Mail
Beat the S&P 500 With This Cash-Gushing Dividend Stock
You don't need to uncover the next big artificial intelligence stock to outperform the broader stock market. Sometimes, consistent and profitable growth is all you need to achieve outsize investment returns. Zoetis (NYSE: ZTS) is an animal healthcare company that split off from Pfizer in 2013. The stock has beaten the S&P 500 ever since, and now may be as good an opportunity as any to buy the stock. Here is why Zoetis is a compelling buy today, and why investors can continue to expect outstanding investment returns over the coming years. A powerhouse product portfolio with many winners Innovation is at the core of the pharmaceutical business, where companies invest substantial resources to develop and obtain regulatory approval for drugs and therapies. Once approved, their patents essentially block out competition for years. The catch is that drug development often fails, so the winners need to compensate for the failures, too. Size and deep pockets are advantages here, and Zoetis sits at the top of the mountain in animal health. The company develops and sells devices and drugs for treating pets and livestock, including cats and dogs, cattle, fish, swine, and poultry. The company expects 2025 sales to exceed $9.2 billion, driven by a portfolio of approximately 300 product lines, including 17 blockbusters that generated at least $100 million in sales last year. Its diversity translates to stable revenue streams. Zoetis' annual sales have continually set new records every year since the company began trading over a decade ago. Zoetis grows and gushes cash, a lucrative combination Zoetis is a highly profitable enterprise, converting roughly $0.25 of every revenue dollar into free cash flow. Having billions of dollars in annual cash profits enables Zoetis to hit the investing trifecta for great stocks: Doing all these things simultaneously is why the stock has performed as well as it has. Data by YCharts. Importantly, this should continue for the foreseeable future. Studies have shown that millennial and Gen Z Americans are driving growth in pet expenditures and ownership rates. Pet owners form emotional bonds with companion animals, which will likely translate to a growing market opportunity for Zoetis, as well as pricing power and spending resiliency through economic cycles. Additionally, livestock remains a long-term growth opportunity. A growing global population will consume more protein, and Zoetis' worldwide footprint should position it for growth in emerging markets, where much of that growth is likely to occur. The stock's valuation isn't usually this attractive You would look at Zoetis and its price-to-earnings (P/E) ratio of 30 and assume the stock is expensive. Ironically, it rarely becomes this cheap. Analysts estimate the company will grow earnings by an average of around 10% annually over the long term. Most stocks with healthy but unspectacular growth don't trade at such valuations. However, Zoetis' business has been such a consistent performer that investors value the stock for its safety. No stock is a sure bet, but you can feel pretty confident about buying and holding this one. Data by YCharts. Ideally, the stock's valuation will become even cheaper, but as you can see, that's a risk because it hasn't fallen much from these levels in over a decade's worth of history. If Zoetis continues to perform as it has, the stock has a good chance of at least maintaining its current P/E ratio, meaning growth and dividends will drive the stock's returns. Investors can realistically expect somewhere around 11% annualized returns, driven by earnings growth and a rising dividend that yields 1.2% today. It's not explosive, but solid, steady returns can outrun the broader market over the long term. Should you invest $1,000 in Zoetis right now? Before you buy stock in Zoetis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
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.
Yahoo
23-05-2025
- Business
- Yahoo
2 Dividend Stocks to Buy With $500 and Hold Forever
Zoetis is a leading animal health company with a deep lineup and significant long-term tailwinds. Abbott Labs has a diversified portfolio of medical devices and several attractive growth avenues. Both healthcare stocks have impeccable dividend track records and bright futures still ahead. 10 stocks we like better than Zoetis › Broader equities have been volatile this year, but that's par for the course. The fact that the stock market will sometimes go through erratic periods is not a good reason not to invest. However, times like these might help remind us that some corporations are more resilient than others. Among the most resilient are longtime dividend payers with excellent underlying businesses and strong outlooks. That description fits Zoetis (NYSE: ZTS) and Abbott Laboratories (NYSE: ABT), two giants in the healthcare sector. For those with $500 to spare (not being saved for emergencies) and in the market for income stocks to park in their portfolios, here's why these two companies are outstanding candidates to put that money into now. Zoetis is a leading animal health company. The company's portfolio of products is deep and diversified. It markets medicines for companion animals, livestock, fish, poultry, and more. Zoetis has over 300 product lines and about 15 that generate over $100 million in annual revenue. Despite its usually strong performance, Zoetis has encountered some issues in the past year. The company's guidance for its fiscal 2025 was weak, or at least so the market thought. Furthermore, Zoetis will face increased competition for one of its growth drivers. The company's Apoquel, which helps relieve allergic itch in dogs, has been a top performer, but one of Zoetis' rivals, Elanco Animal Health, launched an alternative last year. While competition has been, and will continue to be, one of Zoetis' threats, the animal health specialist has been successful despite that. It routinely grows its revenue at a faster rate than the industry average. It is the leader, or one of the market leaders, across most categories and regions where it operates. The company also has important long-term growth drivers. Zoetis' companion animal segment generates the most revenue and is the most promising. Younger generations (millennials and Gen Z) have fewer kids than previous generations but are increasingly humanizing pets. Some of the spending which, for older folks, would have gone into caring for children will be redirected toward cats and dogs due to this dynamic. That should benefit Zoetis, which continues to develop and market newer and better pet care products. That's just one long-term tailwind. Here's another. A growing world population will lead to an increased demand for animal protein. To provide that in spades, we need to care for livestock, something else Zoetis specializes in. The company might encounter issues in the short run due to marketwide troubles and mounting competition, but Zoetis' long-term prospects look attractive thanks to its impressive track record in the industry and its existing lineup of products. Lastly, Zoetis is a terrific dividend stock, even with a mediocre forward yield of 1.2% -- the S&P 500's average is 1.3%. Zoetis has increased its payouts by 502% in the past decade while still boasting a conservative cash payout ratio of 34.2%. The stock should consistently deliver more dividend growth and solid returns to investors holding on to it for good. Abbott Laboratories is best known for its work in the medical device market. Sure enough, this segment is home to its most attractive sources of revenue and biggest growth drivers, but one of the company's strengths is its diversification. Abbott is also a leader in nutrition, boasts a solid diagnostic segment, and markets various pharmaceutical products. Abbott Laboratories has succeeded in keeping its business afloat even when significant problems in one segment or another arise, thanks to its reliance on multiple sources of revenue. That's why it routinely generates consistent revenue and earnings. Meanwhile, the company's prospects look strong. One of the company's key growth drivers is its FreeStyle Libre franchise, a family of continuous glucose monitoring (CGM) systems. The healthcare leader has to contend with stiff competition from DexCom in this area, but despite this long-standing challenge, the FreeStyle Libre has become the most successful medical device ever in terms of dollar sales -- and there is still ample room for growth, considering that the worldwide CGM diabetes market remains underpenetrated. Elsewhere, several other product lines and segments should see increased demand over the long run due to an aging worldwide population. Consider Abbott's MitraClip, a minimally invasive option to treat a serious heart problem called mitral valve regurgitation. This issue is more common among people aged 65 and older. That's why demand for the MitraClip (or other products like it that Abbott manufactures) will grow as people aged 65 and up make up a larger percentage of the population. It might not make a massive difference for just one of these products, but higher demand across the range of the company's portfolio will meaningfully affect its results. Turning to Abbott's income profile, the company has raised its payouts for 53 consecutive years, making it a Dividend King. The stock might only offer a yield of 1.8%, but its cash payout ratio looks reasonable at 60.4%. Abbott will encounter some issues. It is facing lawsuits over its infant formula products for premature babies allegedly causing fatal illnesses, among others. It will also have to deal with a competitive landscape and, potentially, the continuing threat of tariffs that could increase its costs and squeeze its bottom line. However, Abbott's strong presence in the healthcare industry, solid underlying business, and innovative capabilities should allow it to continue performing well over the long run, despite the headwinds. It's an excellent buy-and-hold forever stock for income seekers. 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 169% 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 May 19, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Zoetis. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy. 2 Dividend Stocks to Buy With $500 and Hold Forever was originally published by The Motley Fool
Globe and Mail
23-05-2025
- Business
- Globe and Mail
2 Dividend Stocks to Buy With $500 and Hold Forever
Broader equities have been volatile this year, but that's par for the course. The fact that the stock market will sometimes go through erratic periods is not a good reason not to invest. However, times like these might help remind us that some corporations are more resilient than others. Among the most resilient are longtime dividend payers with excellent underlying businesses and strong outlooks. That description fits Zoetis (NYSE: ZTS) and Abbott Laboratories (NYSE: ABT), two giants in the healthcare sector. For those with $500 to spare (not being saved for emergencies) and in the market for income stocks to park in their portfolios, here's why these two companies are outstanding candidates to put that money into now. 1. Zoetis -- $164 per share Zoetis is a leading animal health company. The company's portfolio of products is deep and diversified. It markets medicines for companion animals, livestock, fish, poultry, and more. Zoetis has over 300 product lines and about 15 that generate over $100 million in annual revenue. Despite its usually strong performance, Zoetis has encountered some issues in the past year. The company's guidance for its fiscal 2025 was weak, or at least so the market thought. Furthermore, Zoetis will face increased competition for one of its growth drivers. The company's Apoquel, which helps relieve allergic itch in dogs, has been a top performer, but one of Zoetis' rivals, Elanco Animal Health, launched an alternative last year. While competition has been, and will continue to be, one of Zoetis' threats, the animal health specialist has been successful despite that. It routinely grows its revenue at a faster rate than the industry average. It is the leader, or one of the market leaders, across most categories and regions where it operates. The company also has important long-term growth drivers. Zoetis' companion animal segment generates the most revenue and is the most promising. Younger generations (millennials and Gen Z) have fewer kids than previous generations but are increasingly humanizing pets. Some of the spending which, for older folks, would have gone into caring for children will be redirected toward cats and dogs due to this dynamic. That should benefit Zoetis, which continues to develop and market newer and better pet care products. That's just one long-term tailwind. Here's another. A growing world population will lead to an increased demand for animal protein. To provide that in spades, we need to care for livestock, something else Zoetis specializes in. The company might encounter issues in the short run due to marketwide troubles and mounting competition, but Zoetis' long-term prospects look attractive thanks to its impressive track record in the industry and its existing lineup of products. Lastly, Zoetis is a terrific dividend stock, even with a mediocre forward yield of 1.2% -- the S&P 500 's average is 1.3%. Zoetis has increased its payouts by 502% in the past decade while still boasting a conservative cash payout ratio of 34.2%. The stock should consistently deliver more dividend growth and solid returns to investors holding on to it for good. 2. Abbott Laboratories -- $136 per share Abbott Laboratories is best known for its work in the medical device market. Sure enough, this segment is home to its most attractive sources of revenue and biggest growth drivers, but one of the company's strengths is its diversification. Abbott is also a leader in nutrition, boasts a solid diagnostic segment, and markets various pharmaceutical products. Abbott Laboratories has succeeded in keeping its business afloat even when significant problems in one segment or another arise, thanks to its reliance on multiple sources of revenue. That's why it routinely generates consistent revenue and earnings. Meanwhile, the company's prospects look strong. One of the company's key growth drivers is its FreeStyle Libre franchise, a family of continuous glucose monitoring (CGM) systems. The healthcare leader has to contend with stiff competition from DexCom in this area, but despite this long-standing challenge, the FreeStyle Libre has become the most successful medical device ever in terms of dollar sales -- and there is still ample room for growth, considering that the worldwide CGM diabetes market remains underpenetrated. Elsewhere, several other product lines and segments should see increased demand over the long run due to an aging worldwide population. Consider Abbott's MitraClip, a minimally invasive option to treat a serious heart problem called mitral valve regurgitation. This issue is more common among people aged 65 and older. That's why demand for the MitraClip (or other products like it that Abbott manufactures) will grow as people aged 65 and up make up a larger percentage of the population. It might not make a massive difference for just one of these products, but higher demand across the range of the company's portfolio will meaningfully affect its results. Turning to Abbott's income profile, the company has raised its payouts for 53 consecutive years, making it a Dividend King. The stock might only offer a yield of 1.8%, but its cash payout ratio looks reasonable at 60.4%. Abbott will encounter some issues. It is facing lawsuits over its infant formula products for premature babies allegedly causing fatal illnesses, among others. It will also have to deal with a competitive landscape and, potentially, the continuing threat of tariffs that could increase its costs and squeeze its bottom line. However, Abbott's strong presence in the healthcare industry, solid underlying business, and innovative capabilities should allow it to continue performing well over the long run, despite the headwinds. It's an excellent buy-and-hold forever stock for income seekers. Should you invest $1,000 in Zoetis right now? Before you buy stock in Zoetis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor 's total average return is962% — a market-crushing outperformance compared to169%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Zoetis. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.
Yahoo
22-05-2025
- Business
- Yahoo
Dr. Mark Stetter Elected to Zoetis Board of Directors
Dean of the University of California, Davis School of Veterinary Medicine brings extensive and valuable experience in animal health to Zoetis Board PARSIPPANY, N.J., May 22, 2025--(BUSINESS WIRE)--Zoetis Inc. (NYSE: ZTS) today announced the election of Dr. Mark Stetter to its Board of Directors, effective as of the company's annual shareholder meeting on May 21, 2025. Dr. Stetter brings extensive experience in veterinary medicine and animal health, including as Dean of the University of California, Davis School of Veterinary Medicine, to the Zoetis Board. His career in animal health includes pets, livestock, exotic animals, research and wildlife. He will serve on the Board's Quality and Innovation Committee. "Dr. Stetter brings invaluable real-world experience in animal health to our Board," said Kristin Peck, Chief Executive Officer of Zoetis. "Our customers are at the heart of everything we do and leveraging Mark's experiences and insights will help us continue to adapt and innovate to best serve them. We're thrilled to have him join our Board as we continue to live our purpose of advancing care for animals." "We are pleased to welcome Dr. Mark Stetter to Zoetis' Board of Directors, and we look forward to the contributions he will make as we continue to advance the animal health industry and deliver innovation to our customers," said Zoetis Board Chair Michael McCallister. Dr. Stetter has served as Dean of the University of California, Davis School of Veterinary Medicine since 2021. In this role he oversees all aspects of the school including education, research, veterinary hospitals, animal health diagnostic labs, centers and institutes. He was Dean and Professor at the College of Veterinary Medicine and Biomedical Sciences at Colorado State University from 2012 until 2021. Prior to joining higher education, Dr. Stetter held various roles at The Walt Disney Company, The Bronx Zoo/Wildlife Conservation Society and the Audubon Nature Institute. Dr. Stetter holds a Doctor of Veterinary Medicine and a Bachelor of Science degree in biochemistry and chemistry from the University of Illinois at Champaign-Urbana. "I am incredibly grateful for the opportunity to join Zoetis' Board of Directors," said Dr. Mark Stetter. "As a veterinarian I've seen firsthand the impact the company's innovative products have on animals, and I look forward to bringing my professional expertise and passion for animal health to Zoetis as they continue to advance care for the industry." About ZoetisAs the world's leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock producers. The company's leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $9.3 billion in 2024 with approximately 13,800 employees. For more information, visit ZTS-COR ZTS-IR View source version on Contacts Media:Jennifer Albano1-862-399-0810 (o) Laura Panza1-973-975-5176 (o) Investor:Steve Frank1-973-822-7141 (o) Nick Soonthornchai1-973-443-2792 (o) Sign in to access your portfolio
