Zoetis (ZTS) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - The article discusses various stock rating systems, including the Zacks Rank and Style Scores, which help investors identify stocks with the potential for high returns based on value, growth, and momentum characteristics [1][5][15]. Stock Rating System - Stocks are assigned ratings from A to F, with A being the best, indicating a higher chance of outperforming the market [1]. - The Zacks Rank utilizes earnings estimate revisions to assist investors in creating successful portfolios [5]. Style Scores - The Value Style Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [16]. - The Growth Style Score evaluates a company's financial strength and future outlook, emphasizing projected earnings and cash flow [2]. - The Momentum Style Score capitalizes on price trends, using metrics like weekly price changes to identify favorable investment opportunities [3]. - The VGM Score combines all Style Scores, providing a comprehensive indicator for stock selection [4]. Investment Recommendations - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for the highest probability of success [7]. - A stock rated 3 (Hold) should also have Style Scores of A or B to maximize upside potential [7]. - Stocks rated 4 (Sell) or 5 (Strong Sell) are less favorable, even if they have high Style Scores, due to declining earnings forecasts [8]. Company Spotlight: Zoetis Inc. - Zoetis Inc. is a leader in the animal health sector, focusing on various product categories for livestock and companion animals [10]. - The company has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating potential for growth [11]. - Zoetis is forecasted to achieve year-over-year earnings growth of 11.1% for the current fiscal year, with recent earnings estimates revised upward [11][12].