Zoetis Inc. (NYSE:ZTS) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026. Piper Sandler Flags Near-Term Uncertainty for Zoetis (ZTS) Despite Long-Term Appeal Budimir Jevtic/Shutterstock.com On January 22, Piper Sandler downgraded Zoetis Inc. (NYSE:ZTS) to Neutral from Overweight. It also slashed its price target to $135 from $190. The firm said it still likes Zoetis’ product portfolio over the long run, but sees too much uncertainty in the next couple of years. Until more new produ ...

Key Takeaways Snap-on's RCI process boosts efficiency, productivity and margin resilience.The company expands franchise network and deepens repair shop customer ties.New hand tools and torque products fuel growth in automotive, aviation and industrial markets.Snap-on Incorporated (SNA) is making solid progress on its strategic priorities. SNA’s strengths are rooted in its powerful brand, differentiated business model and strong customer relationships. The company benefits from a well-established franchise n ...

Core Insights - Abbott Laboratories (ABT) is valued at a market cap of $217 billion and operates in the healthcare sector, focusing on medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals [1] Financial Performance - Analysts expect ABT to report a profit of $1.50 per share for fiscal Q4 2025, reflecting an 11.9% increase from $1.34 per share in the same quarter last year [2] - For the current fiscal year ending in December, ABT is projected to report a profit of $5.15 per share, up 10.3% from $4.67 per share in fiscal 2024, with an expected EPS growth of 9.9% year-over-year to $5.66 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, ABT shares have gained 8.8%, underperforming the S&P 500 Index's 14.8% return and the State Street Health Care Select Sector SPDR ETF's 11.8% increase [4] - On October 15, ABT shares fell by 2.9% following mixed Q3 earnings results, with net sales increasing 6.9% year-over-year to $11.4 billion but missing consensus estimates due to a decline in the diagnostic products segment [5] Analyst Ratings - Wall Street analysts maintain a "Strong Buy" rating for ABT, with 19 out of 27 analysts recommending "Strong Buy," two suggesting "Moderate Buy," and six indicating "Hold." The mean price target for ABT is $146.69, suggesting a 17.5% potential upside from current levels [6]

Core Viewpoint - Thermo Fisher Scientific Inc. (TMO) is recognized as one of the best stocks to buy in the S&P 500, with a consensus Strong Buy rating from analysts and a one-year price target indicating a potential upside of 12% [1]. Analyst Updates - Wells Fargo raised its price target for TMO to $675 from $635, citing improved clarity on U.S. pharmaceutical policies and positive growth projections [2]. - Citigroup upgraded TMO's rating to Buy from Neutral and increased its price target to $660 from $580, driven by favorable trends in onshoring and pharmaceutical spending [3]. Company Overview - Thermo Fisher Scientific is a leading provider of life sciences solutions, laboratory products, diagnostics, analytical instruments, and biopharma services, with an 8% gain year-to-date in 2025 [4].

Market Overview - The S&P 500 index fell 1.16% to close at 6,721.43, marking the fourth consecutive day of decline due to an ongoing AI infrastructure selloff [1] - Despite the recent downturn, the S&P 500 is up 14.28% year-to-date, indicating a potential for a third consecutive year of double-digit gains [2] Analyst Insights - Brian Mulberry from Zacks Investment Management noted a rotation from large-cap growth to large-cap value, suggesting investors are adopting a more defensive posture ahead of next year [2] - A survey of nine major investment banks indicated a forecasted 10% gain in the S&P 500 over the next 12 months, with expectations that the index will surpass 7,500 by 2026 [3] Investment Methodology - The article identifies the top 14 S&P 500 stocks based on positive analyst sentiment and hedge fund interest, utilizing data from Insider Monkey's database as of Q3 2025 [5] - The strategy has historically outperformed the market, returning 427.7% since May 2014, significantly beating its benchmark [6] Company Highlights Thermo Fisher Scientific Inc. (NYSE:TMO) - Ranked 14th among the best S&P 500 stocks, with 121 hedge fund holders and a consensus Strong Buy rating [7] - Analysts have set a one-year average price target of $640.30, representing a 12% upside [7] - Wells Fargo raised its price target to $675 from $635, citing favorable U.S. government policies and growth projections [8] - Citigroup upgraded the stock to Buy from Neutral, increasing its price target to $660 from $580, driven by onshoring trends and increased pharmaceutical spending [9] - The stock has gained 8% year-to-date [10] Oracle Corporation (NYSE:ORCL) - Ranked 13th with 122 hedge fund holders and a consensus Moderate Buy rating [11] - Barclays maintains an Overweight rating with a price target of $310, while RBC Capital cut its target to $250 from $310 [11] - Oracle's diluted EPS of $2.26 exceeded estimates, but revenue and other key metrics fell short of expectations [12] - The company anticipates capital expenditures to be $15 billion higher than initially projected [13] - Future share price stability will depend on capital efficiency and free cash flow recovery [14] - Analysts have set a one-year average price target of $308.87, indicating a 67% upside [15]

Company Overview - Snap-on Incorporated (SNA) is based in Kenosha, Wisconsin, and specializes in building and selling professional tools, equipment, diagnostics, and repair solutions, serving automotive, aerospace, energy, and transportation markets through various channels [1] Stock Performance - SNA stock is currently trading approximately 4.1% below its January high of $365.78 and has gained 5.2% over the past three months, outperforming the State Street Industrial Select Sector SPDR ETF (XLI), which rose 3.4% [2] - Over the past 52 weeks, SNA stock has decreased by 1.4%, but it has posted a 3.3% gain year-to-date (YTD). In contrast, XLI has increased by 13.8% over the same period and nearly 19% YTD, indicating Snap-on's relative underperformance [4] Technical Analysis - Technically, SNA stock has maintained a steady position, remaining above its 50-day moving average of $339.90 and its 200-day moving average of $328.49 since early December, which signals improving sentiment [5] Recent Financial Performance - On October 16, SNA shares surged nearly 3.5% following a stronger-than-expected Q3 fiscal 2025 report. The Repair Systems & Information group contributed to a 3.8% year-over-year increase in net sales to $1.19 billion, surpassing analyst estimates of $1.15 billion. Net earnings rose by 5.7% to $265.4 million, with adjusted EPS at $4.71 per share, exceeding forecasts of $4.59 [6] Competitive Landscape - SNA's competitor, Kennametal Inc. (KMT), has gained 8.8% over the past 52 weeks and 22.1% YTD, indicating that Snap-on has room to catch up [7] - Analysts maintain a positive outlook for SNA, with a "Moderate Buy" consensus rating from 10 analysts and a mean price target of $365.29, suggesting a premium of 4.1% to current levels [7]

Core Insights - Zoetis Inc. (NYSE:ZTS) is recognized as a strong investment opportunity by analysts, particularly following its innovation day on December 2, which showcased long-term growth prospects [1] - The animal health market is projected to grow to $90 billion by 2035, nearly doubling its current size, which is significant for Zoetis as it has 12 candidates in its pipeline targeting chronic kidney disease, oncology, and cardiology, representing over $5 billion in total addressable market [2] Analyst Ratings - Following the innovation day, Brandon Vazquez from William Blair reiterated a Buy rating on Zoetis Inc. without a specified price target, while Michael Ryskin from Bank of America Securities also maintained a Buy rating but reduced the price target from $200 to $165 [3] - Vazquez emphasized that the updates from the innovation day indicate a strong innovation engine for the company, which may offset the underperformance of Librela in 2025, and he views the company's valuation at 18.5 times its 2026 forward earnings as attractive [4] Company Overview - Zoetis Inc. is a leading global animal health company engaged in the discovery, development, manufacturing, and commercialization of medicines, vaccines, diagnostics, biodevices, genetic tests, and precision health solutions [5]

Core Insights - The article discusses the anticipated economic environment in 2026, highlighting expected interest rate cuts and the impact on various sectors, particularly mortgage REITs and pharmaceutical companies. Group 1: Interest Rates and Mortgage REITs - Interest rates are projected to decline, with Fed Chair Jay Powell having already implemented two rate cuts, and more expected under Kevin Hassett's leadership [3][4] - Mortgage REITs like Annaly Capital (NLY) and Dynex Capital (DX) are well-positioned to benefit from falling rates, with yields of 12.3% and 14.7% respectively, and potential for significant price appreciation [4][5] - The easing of mortgage spreads, which are crucial for profitability, indicates a favorable environment for these mortgage REITs as they hold government-backed securities [5][6] Group 2: Pharmaceutical Industry and AI - The pharmaceutical industry is set to experience accelerated drug discovery cycles, potentially reducing the time from development to market from 10-15 years to 3-6 years due to AI advancements [7][8] - Companies like BlackRock Health Sciences Term Trust (BMEZ) are positioned to benefit from this trend, yielding 8.6% while investing in innovative drug development firms [9] - Danaher (DHR) is highlighted as a key supplier in the life sciences sector, providing essential tools and consumables for drug development, which are expected to see increased demand due to AI-driven research [11][12] Group 3: Consumer Goods - Hershey Foods - Hershey Foods (HSY) is noted for its strong brand portfolio and resilience despite rising cocoa prices, with management implementing efficiency plans and price increases to maintain cash flow [14][15] - The company has raised its dividend by 70% over five years, indicating a strong commitment to shareholder returns and positioning for a rebound as input costs stabilize [15]

Core Insights - The article discusses the anticipated decline in interest rates and its implications for mortgage REITs like Annaly Capital and Dynex Capital, which are well-positioned to benefit from falling rates and currently offer high dividend yields of 12.3% and 14.7% respectively [1] - The introduction of "Applied AI" in drug discovery is expected to significantly shorten the time required to bring new drugs to market, potentially reducing the cycle from 10-15 years to 3-6 years, which will enhance profitability for pharmaceutical companies [1] - Danaher is highlighted as a key player in the life sciences sector, providing essential tools and consumables for drug development, benefiting from increased R&D activities driven by AI advancements [1][2] - Hershey Foods is noted for its strong brand portfolio and recent operational efficiencies, positioning it for a rebound after a period of margin compression due to rising cocoa prices [2] Mortgage REITs - Annaly Capital and Dynex Capital are expected to thrive as interest rates decline, with their portfolios consisting of government-backed mortgages that appreciate in value as rates fall [1] - The mortgage spreads, which are crucial for profitability, have been easing, creating favorable conditions for these mortgage REITs [1] Pharmaceutical Industry - The integration of AI in drug discovery is projected to compress development timelines, allowing companies to monetize successful drugs more quickly and extend their monopoly pricing periods [1] - BlackRock Health Sciences Term Trust is mentioned as a vehicle for investing in innovative drug development companies, offering an 8.6% yield [1] Life Sciences Sector - Danaher is positioned to benefit from increased demand for laboratory tools and consumables as pharmaceutical companies ramp up R&D efforts, driven by AI [1][2] - The company avoids the political challenges faced by drug manufacturers, focusing instead on providing essential support for drug development [1] Consumer Goods - Hershey Foods has implemented a two-year efficiency plan and raised prices, which has helped it maintain cash flow despite rising input costs [2] - The company has increased its dividend by 70% over five years, indicating strong shareholder returns and potential for future growth [2]

Core Insights - Agilent Technologies reported a strong quarterly performance with organic revenue growth of 7.2%, surpassing Wall Street's expectation of 5.3% [1] - The company provided robust revenue guidance for 2026, although earnings guidance was slightly below expectations [1] - Following the earnings report, Agilent's stock price increased by $3.60, or over 2%, but remains down more than $20 from its peak during the COVID year [1] Company Overview - Agilent Technologies specializes in providing instruments, software, and services for life sciences, diagnostics, and chemical analysis, including chromatography, spectroscopy, genomics, and laboratory automation solutions [2]