Deep Dive Into Zoetis Stock: Analyst Perspectives (4 Ratings)

Across the recent three months, 4 analysts have shared their insights on Zoetis ZTS, expressing a variety of opinions spanning from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Zoetis, presenting an average target of $205.25, a high estimate of $225.00, and a low estimate of $180.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 4.98%.

Interpreting Analyst Ratings: A Closer Look

The standing of Zoetis among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zoetis. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Zoetis compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Zoetis's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into Zoetis's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Zoetis analyst ratings.

Get to Know Zoetis Better

Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on), and nearly 65% from companion animal (dogs, horses, cats) products. Its U.S. business is heavily skewed toward companion animals, while its international business is slightly skewed toward production animals. The firm has the largest market share in the industry and was previously Pfizer's animal health unit.

Zoetis: Delving into Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Zoetis's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.5% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Zoetis's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 27.35% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Zoetis's ROE excels beyond industry benchmarks, reaching 11.91%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Zoetis's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.18%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 1.34, Zoetis faces challenges in effectively managing its debt levels, indicating potential financial strain.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.