Elanco Animal Health Incorporated (ELAN) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power ...

Group 1 - The total number of shares representing the share capital as of May 31, 2025, is 8,390,660 [1] - The total number of voting rights is reported as 12,705,976 [1] - The net total of voting rights, which excludes shares with no voting rights, is 12,693,140 [1] Group 2 - The company is listed on Euronext Paris under Compartiment A with ISIN code FR0000031577 [2] - The corporate finance contact information includes a telephone number and email for inquiries [2] - The company operates in the animal health sector, focusing on shaping the future of this industry [2]

Investment Rating - The report maintains a positive outlook on cement, copper, and incrementally positive on steel and aluminium, while holding a negative view on coal and lithium [1][9]. Core Insights - Earnings estimates for China commodities have been refreshed, reflecting mark-to-market price changes for 1H25, with target price changes ranging from -13% to +12% [1][9]. - The report highlights a positive outlook for hog pricing/margin in 2H25E due to improved supply discipline [1][9]. Summary by Sector Steel - Earnings forecasts for Baosteel and Angang have been revised up by 1-4% for 2025E, while the loss-making forecast for Maanshan has been cut by 11% [10]. - Maintain Buy on Baosteel with a new target price of Rmb8.8/sh [10]. Coal - The thermal coal market is expected to remain balanced in 2025E, with a decline in demand driven by renewable energy expansion [11]. - Earnings forecasts for Shenhua, Chinacoal, and Yankuang have been cut by 2-11% for 2025E and 10-27% for 2026-27E [12]. Cement - Unit gross profit forecasts for cement have been revised down by Rmb2-6/t for 2025E, but a positive view is maintained for 2H25E due to supply discipline [13]. - Earnings estimates for CNBM, WCC, BBMG-H/A, Conch-H/A, and CRBMT have been cut by 6% to 18% for 2025E [14]. Aluminum - Earnings estimates for Hongqiao have been revised up by 5-27% for 2025-27E, reflecting higher industry spread forecasts [17]. - Maintain Neutral on Hongqiao with a target price of HK$12.5/sh [17]. Copper - The benchmark copper price forecast has been revised to an average of US$4.20/lb in 2025E and US$4.61/lb in 2026E [18]. - Earnings estimates for CMOC-H/A, JXC-H/A, and MMG have been cut by 1-18% for 2025-26E [18]. Lithium - Earnings estimates for Ganfeng, Tianqi, and Yongxing have been cut by 3-4% for 2025E due to lower lithium prices [20]. - Yongxing's 2027E earnings have been cut by 37% based on flat lithium price forecasts [20]. Paper - Earnings forecasts for ND Paper have been revised up by 3-4%, while Sunpaper's earnings have been cut by 3% [22].

Core Insights - Zoetis (ZTS) has seen a 12.5% increase in share price over the past month, indicating strong market performance in the animal health sector [1] - The company operates across seven major product categories and serves eight core species, including both livestock and companion animals [1] Product Performance - Strong growth is attributed to Zoetis' companion animal portfolio, with key products like Apoquel, Cytopoint, and newer offerings such as Simparica and ProHeart 12 driving sales [3] - Recent FDA approvals for Apoquel Chewable and expanded indications for Simparica Trio are expected to enhance demand further [3] International Expansion - Zoetis is expanding its international presence, with products like Rimadyl approved in China and strong uptake of monoclonal antibody therapies for osteoarthritis pain in pets [4] Strategic Acquisitions - The company has been actively acquiring businesses to strengthen its market position, including the acquisition of PetMedix Ltd. and adivo GmbH, which focus on antibody-based therapeutics for companion animals [6] Technological Advancements - In early 2024, Zoetis enhanced its Vetscan Imagyst diagnostics platform with AI capabilities for urine testing and lymph node screening, improving in-clinic diagnostic capabilities [7] Shareholder Value - Zoetis has consistently increased dividends, with a 16% increase in the third quarter of 2025 compared to 2024, making it an attractive option for investors [8] Stock Performance and Valuation - Year-to-date, Zoetis shares have gained 3.5%, underperforming the industry average of 10.4%, but still outperforming the sector and S&P 500 [9] - The stock is currently trading at a premium valuation compared to the industry, but strong fundamentals suggest potential for lucrative returns [12] Earnings Estimates - The Zacks Consensus Estimate for Zoetis' 2025 earnings per share has risen from $6.08 to $6.26, with 2026 estimates increasing from $6.65 to $6.79, indicating a positive outlook for growth [15]

Core Insights - Nearly 90% of U.S. dogs are reported as "itchy dogs" by their owners, with over 80% of owners indicating that pollen levels in their cities exacerbate their dogs' itchiness [1][4] - Pet owners spend an average of $173 more and use two additional treatments during allergy season to manage their dogs' itch [1] - There is a significant emotional toll on dog owners, with 75% feeling hopeless when their veterinarian cannot provide relief for their itchy dogs [3] Treatment and Veterinary Insights - Itching is a leading reason for veterinary visits, with owners typically waiting an average of 6 weeks before seeking help [2] - 90% of veterinarians believe that dog owners wait too long to bring in their itchy dogs, leading to more severe skin issues [2] - A majority of dog owners prefer a single daily pill for treatment rather than multiple pills [2] - 75% of dog owners expressed a need for more affordable options to manage their dogs' itch [2] Emotional and Social Impact - 53% of itchy dog owners feel judged by their community, and 75% feel hopeless when treatment is ineffective [3] - Successful treatment of itchy dogs strengthens the bond between veterinarians and pet owners, with 84% of veterinarians noting increased visits for other issues and 70% of owners referring others to their practice [3] Geographic Insights - In the highest human allergy cities, 85% of dogs experience itch during allergy season, compared to 79% of all U.S. dogs [4] - Specific cities exhibit unique trends, such as Memphis, TN, where owners spend an average of $548 year-round on treatments, significantly higher than the national average of $302 [11]

Group 1: Market Overview - Wall Street may face volatility due to renewed trade tensions between the United States and China, with both countries blaming each other for breaching a temporary trade deal [1] Group 2: Investment Strategy - Richard Driehaus's investment strategy, known as "buy high and sell higher," can help identify stocks with positive momentum despite broader market fluctuations [2][3] - The strategy emphasizes investing in stocks that are increasing in price rather than those in decline, aiming for better long-term returns [3][6] Group 3: Screening Parameters - The Association of Individual Investors (AAII) uses the percentage 50-day moving average and positive relative strength as key criteria for stock selection [4][5] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Score of A or B are considered to have the best upside potential [7][8] Group 4: Stock Performance - Urban Outfitters, Inc. (URBN), Phibro Animal Health Corporation (PAHC), and Strattec Security Corporation (STRT) are highlighted as stocks demonstrating positive momentum and strong earnings growth [9][11][12][13] - URBN has a trailing four-quarter earnings surprise of 29%, PAHC has 30.6%, and STRT has an impressive 195.8% average surprise over four quarters [11][12][13]

Company Overview - Zoetis is a global leader in animal health, generating $9.3 billion in revenue last year [3] - The company has over 70 years of experience in delivering medicines, vaccines, diagnostics, and genetic testing [3] - Zoetis employs approximately 14,000 colleagues worldwide and boasts a strong R&D engine [3] Market Position and Growth - The company operates in two attractive end markets characterized by strong secular growth trends [4] - Zoetis has a competitive advantage through innovation, scale, and differentiated execution [4] - The industry grows at a rate of 4% to 6%, with Zoetis growing on average three percentage points above this rate [4]

Summary of Zoetis (ZTS) FY Conference Call - June 03, 2025 Company Overview - **Company**: Zoetis - **Industry**: Animal Health - **Revenue**: $9.3 billion in the previous year - **Employees**: Approximately 14,000 globally - **Core Competencies**: Medicines, vaccines, diagnostics, genetic testing across eight core species and various geographies [2][4] Core Insights and Arguments - **Market Growth**: The animal health industry is growing at a rate of 4% to 6%, with Zoetis outperforming this by approximately three percentage points [3] - **Innovation and Competitive Advantage**: Zoetis emphasizes innovation, scale, and differentiated execution as key drivers of growth. The company is focused on lifecycle innovation and expanding existing franchises [3][4] - **Long-term Growth Strategy**: The company aims to drive long-term shareholder value through revenue growth, investment in innovation, and returning excess capital to shareholders via dividends and share buybacks [4] Companion Animal Business - **Outperformance**: The companion animal segment has consistently outperformed the market due to strong customer relationships and innovative product offerings [5][7] - **Market Penetration**: In the U.S., three out of five top products in companion animal clinics are from Zoetis, indicating high customer satisfaction and market share [15] - **Chronic Conditions**: The company is actively addressing chronic conditions like kidney disease, which are significant unmet needs in veterinary care [15][16] Competitive Landscape - **Anticipation of Competition**: Zoetis has been proactive in anticipating competition and believes that the market has significant room for expansion despite new entrants [17][21] - **Dermatology and Parasiticides**: The company treats approximately 12 million dogs with dermatology products, with a potential market of 20 million dogs needing treatment. In parasiticides, only one-third of the 90 million dogs in the U.S. are on prescription products, indicating substantial growth opportunities [18][20] Pipeline and Future Products - **R&D Investment**: Zoetis invests about $700 million annually in R&D, focusing on lifecycle innovations and new product development [36] - **Key Areas of Focus**: Chronic kidney disease, oncology, and cardiology are identified as significant growth areas, with potential market sizes of $3 billion and $1-2 billion respectively [37][38] - **Upcoming Approvals**: The company expects major product approvals in the coming years, which could lead to new billion-dollar markets [38] Macro Environment and Resilience - **Market Resilience**: The animal health industry has shown resilience during economic downturns, with Zoetis maintaining a growth rate above the industry average [50][51] - **Consumer Confidence**: Despite some fluctuations in consumer confidence, Zoetis reported a 9% organic growth rate, demonstrating the strength of its business model [51][52] Financial Performance - **Operating Margins**: Zoetis has achieved nearly 40% operating margins, with a focus on driving EPS growth above sales growth through innovation and strategic investments [55][56] - **Price Adjustments**: The company has successfully implemented price increases of 2% to 3% historically, contributing to margin expansion [56][57] Additional Insights - **Education and Awareness**: Zoetis is focused on educating pet owners and veterinarians about the importance of early intervention in chronic conditions, which is expected to drive market growth [44][46] - **Generational Shift**: There is a noted shift in how pet owners view their pets, increasingly treating them as family members, which is expected to expand the market further [27] This summary encapsulates the key points discussed during the Zoetis FY Conference Call, highlighting the company's strategic focus, market opportunities, and financial performance.

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score capitalizes on existing price trends to identify favorable investment opportunities [6] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [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] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Company Spotlight: Zoetis Inc. - Zoetis Inc. specializes in animal health products and was established after Pfizer spun off its animal health division [12] - The company operates in seven major product categories and serves both livestock and companion animals [12] - Currently, Zoetis holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating moderate potential [13] - The stock has shown a 7.4% increase over the past four weeks, with positive earnings estimate revisions for fiscal 2025 [13] - Given its solid rankings and momentum, Zoetis is recommended for investors' consideration [14]

Summary of Zoetis (ZTS) 2025 Conference Call Company Overview - **Company**: Zoetis (ZTS) - **Date of Conference**: May 29, 2025 - **Key Speaker**: Wetteny Joseph, CFO Industry Context - **Industry**: Animal Health and Pharmaceuticals - **Key Competitors**: Elanco, Merck Key Points and Arguments Tariffs and Supply Chain - **Tariff Impact**: Tariffs are a significant concern, with Zoetis actively monitoring the situation and having multiple mitigation strategies in place [2][3][4] - **US Manufacturing**: 75% of products sold in the US are manufactured domestically, and Zoetis exports more from the US than it imports, positioning the company favorably in the context of potential tariffs [3][4] - **Intellectual Property**: 99% of Zoetis' intellectual property is based in the US, further supporting its domestic manufacturing strategy [4] Financial Performance and Guidance - **2025 Revenue Growth**: The company anticipates organic operational revenue growth of 6% to 8%, with a strong start in Q1 at 9% [13][14] - **Adjusted Net Income Growth**: Expected growth of 5% to 7% in adjusted net income for the year, with Q1 performance at 6% [18][19] - **Market Competition**: Anticipation of competitive product launches in the second half of the year, which may affect growth rates [14][15] Product Performance - **Dermatology Products**: There is a significant opportunity in the dermatology segment, with 20 million untreated dogs globally. Current treatment is only for 12 million dogs, indicating room for growth [26][28][30] - **Chronic Medications**: Some pressures were noted in the high-end chronic medication segment, particularly in February, but overall growth remained strong [21][22][23] - **Next-Gen Products**: Excitement around the next generation of long-acting pain medications, with expected launches in the next 12 to 36 months [33][34][39] Market Dynamics - **Parasiticides Market**: The Tru product line continues to perform well, with a 40% growth last year. The market for triple combination parasiticides is expanding, with Zoetis gaining market share [57][58][59] - **Alternative Channels**: Approximately 21% of US companion animal sales are through alternative channels, which are growing faster than traditional clinic sales [68][70] Margin and Cost Structure - **Operating Margins**: Expected operating margin for 2025 is around 39%, with historical growth in the bottom line outpacing the top line [60][62] - **Cost of Sales**: Inventory priced at higher costs is impacting margins, but the company expects to see improvements in the second half of the year [19][62] Strategic Initiatives - **Education and KOL Engagement**: Zoetis is focusing on educating veterinarians and leveraging key opinion leaders (KOLs) to drive product adoption and market penetration [51][52][53] - **Compliance and Convenience**: The company is seeing better compliance rates due to the convenience of alternative channels, which is expected to drive growth [29][68] Additional Important Insights - **Market Opportunities**: The company sees substantial opportunities in both existing and new product lines, particularly in the companion animal segment [23][28][30] - **Regulatory Considerations**: Ongoing regulatory processes for new products are being closely monitored, with expectations for approvals in the near future [45][46] This summary encapsulates the key discussions and insights from the Zoetis conference call, highlighting the company's strategic positioning, financial outlook, and market opportunities.