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Here's Why Zoetis (ZTS) is a Strong Growth Stock
ZTSZoetis(ZTS) ZACKS·2024-12-13 15:46

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market within a 30-day timeframe [3] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score emphasizes identifying undervalued stocks using financial ratios [4] - Growth Score focuses on a company's future earnings and financial health [5] - Momentum Score capitalizes on price trends and earnings outlook changes [6] - VGM Score combines all three styles to highlight stocks with the best overall potential [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - There are typically over 800 top-rated stocks available, making selection challenging for investors [10] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [11] - The direction of earnings estimate revisions is crucial in stock selection, as downward trends can indicate potential price declines [12][13] Company Spotlight: Zoetis Inc. - Zoetis Inc., established from Pfizer's animal health business spin-off, specializes in products for livestock and companion animals [14] - Currently rated 3 (Hold) with a VGM Score of B, Zoetis shows promise for growth investors with a projected earnings growth of 10.9% for the current fiscal year [15] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing to $5.90 per share [15] - With a solid Zacks Rank and favorable Style Scores, Zoetis is recommended for investors' consideration [16]