Zoetis Inc. (NYSE:ZTS) is one of the best pet stocks to buy according to hedge funds. Barclays reaffirmed a Hold rating on Zoetis Inc. (NYSE:ZTS) on February 18, setting a price target of $136.00. The rating update came after Zoetis Inc. (NYSE:ZTS) announced fiscal Q4 and full year 2025 results on February 12, reporting revenue of $2.4 billion for fiscal Q4 2025 and reflecting a 3% growth compared to fiscal Q4 2024. Revenue for the quarter rose 4% compared to the prior year period on an organic operational ...

Key Takeaways OVV will report Q4 2025 results on Feb. 23, with EPS seen at 98 cents on $1.95B revenues.Ovintiv's Q3 EPS beat on higher condensate volumes and gas prices, but revenues fell 11%.OVV's operating expenses seen down 28.2% to $1.6B, with broad cost declines across categories.Ovintiv Inc. (OVV) is scheduled to release its fourth-quarter fiscal 2025 results on Feb. 23. The Zacks Consensus Estimate for earnings is pegged at 98 cents per share on revenues of $1.95 billion.Let us examine the key driver ...

Core Viewpoint - Phibro Animal Health Corporation (NASDAQ:PAHC) is recognized as one of the seven cheap pharmaceutical stocks to consider for investment, particularly noted for its strong operational performance and positive financial outlook [1][2]. Financial Performance - For the fiscal second quarter ending December 31, 2025, Phibro reported a 21% increase in net sales to $373.9 million and a rise in net income to $27.5 million [4]. - Adjusted EBITDA increased by 41% to $68.1 million, while adjusted diluted EPS rose by 58% to $0.87 [4]. - The company has updated its fiscal 2026 net sales estimates to between $1.45 billion and $1.50 billion, with adjusted EBITDA projected between $245 million and $255 million, reflecting improved operating momentum [5]. Analyst Ratings - Morgan Stanley raised its price target for PAHC from $45 to $49, maintaining an Equal Weight rating, citing strong operational performance and effective execution in the Animal Health segment [3]. - The upgrade was influenced by significant margin expansion, a favorable fiscal 2026 forecast, and a profit beat in the second quarter [3].

Zoetis Inc. (NYSE:ZTS) is among the 7 Cheap Pharmaceutical Stocks to Buy According to Hedge Funds. Bank of America Cites Zoetis Inc.'s (ZTS) Strong Q4 Performance and Fiscal 2026 Outlook Zoetis Inc. (NYSE:ZTS) tops our list for being one of the cheap pharmaceutical stocks. TheFly reported on February 13 that Bank of America raised its price target for ZTS to $140 from $135 and maintained a Neutral rating on the shares. The upgraded target was supported by the company's fiscal 2026 projection and fourth- ...

Company Overview - Moderna, Inc. is a leading player in the biotech industry, recognized for its innovative mRNA technology and focus on developing vaccines and therapeutics, positioning it as a leader in the biomedical and genetics sector [1] Stock Performance - On February 16, 2026, UBS maintained a Neutral rating for Moderna, advising investors to hold the stock, with the stock priced at $42.23 and a revised price target adjusted from $34 to $36, indicating a cautious yet optimistic outlook [2] - Moderna's shares experienced a 5.3% increase on February 13, driven by investor interest in large-cap biotech companies, highlighting the positive sentiment surrounding the stock [3][6] - The stock has fluctuated between $41.23 and $44.80 on the day, with a 52-week high of $55.20 and a low of $22.28, reflecting its volatility in the market [5] Market Capitalization and Trading Volume - Moderna's market capitalization is approximately $16.5 billion, with a trading volume of 16,336,584 shares, indicating significant investor activity [4][6] Industry Sentiment - The biotech sector's improved outlook and institutional buying have contributed to positive sentiment surrounding Moderna, as investors are attracted to the company's blend of innovation and stability, recognizing its potential for sustained momentum beyond the pandemic-driven surge [4]

Company Insights - Shares of Moderna, Inc. (MRNA) rose 5.3% on February 13, indicating renewed investor interest in large-cap biotech names amidst a choppy broader market [1][5] - The increase in stock price reflects confidence in Moderna's underlying vaccine platform and its ability to maintain momentum beyond the initial pandemic-driven surge [2] - Moderna continues to advance its mRNA technology, developing updated vaccines and expanding its development pipeline, which reinforces its long-term growth narrative [2] Industry Trends - Broader sentiment toward the biotech space improved, with several healthcare names attracting fresh capital as investors sought to diversify portfolios and manage volatility [3] - Institutional buying and short-covering likely contributed to the stock's strength, as investors rewarded companies with established commercial products and visible research pipelines [4] - The 5.3% rally in MRNA reflects a recalibration in risk appetite, balancing caution about market conditions with confidence in innovative healthcare leaders [4]

Industry Overview - The U.S. pharmaceutical industry is projected to grow from $634.32 billion in 2024 to $883.97 billion by 2030, driven by strong momentum in customized medicine, which is expected to increase from $169.56 billion in 2024 to $307.04 billion by 2033, reflecting a compound annual growth rate (CAGR) of 6.82% from 2025 to 2033 [1][2] - Key drivers include improvements in next-generation sequencing, rising demand for tailored treatments, and favorable legal frameworks for drug development and diagnostics, although high development costs and a lack of clinical standards pose challenges [2] Policy Changes - Significant policy changes during President Donald Trump's second term include a 100% tariff on imported name-brand medications starting in 2025 and a "Build It Here" mandate to promote domestic production [3] - The implementation of Most-Favored-Nation pricing orders and the introduction of TrumpRx.gov aim to align American drug prices with those of other developed nations, emphasizing cost minimization and pharmaceutical self-reliance through expedited approval processes for generics and biosimilars [3] Market Risks and Opportunities - The Boston Consulting Group warns of a $350 billion global patent cliff as major medications like Keytruda and Eliquis lose exclusivity, although growth is anticipated through biologics, gene treatments, and AI-driven R&D [4] - Analysts predict increased mergers and acquisitions, stable credit conditions supported by substantial cash reserves, and ongoing innovation in the sector [4] M&A Activity and Future Outlook - Robust early-year M&A activity has been noted, with expectations for improved performance in 2026 for pharmaceutical and biotech companies, particularly in cardiometabolic, obesity, cardiovascular, and cancer sectors, as major patent cliffs approach in 2028 and 2029 [5] Stock Selection Methodology - The selection of pharmaceutical stocks is based on a forward PE ratio of 20 or less, with the top 7 stocks ranked by the number of hedge fund holders as of Q3 2025 [7] - Research indicates that imitating the top stock picks of leading hedge funds can lead to market outperformance, with a reported return of 427.7% since May 2014, surpassing benchmarks by 264 percentage points [8] Company Highlights - **Phibro Animal Health Corporation (NASDAQ:PAHC)**: - Number of Hedge Fund Holders: 23 - Forward PE Ratio: 17.28 - Recent fiscal second-quarter results showed a 21% increase in net sales to $373.9 million and a net income rise to $27.5 million, with adjusted EBITDA up 41% to $68.1 million and adjusted diluted EPS up 58% to $0.87 [10][12] - Full-year net sales estimates have been updated to $1.45 billion to $1.50 billion, with adjusted EBITDA projected at $245 million to $255 million [13] - **Collegium Pharmaceutical, Inc. (NASDAQ:COLL)**: - Number of Hedge Fund Holders: 27 - Forward PE Ratio: 6.13 - The company expects net product revenue for 2026 to range from $805 million to $825 million, with Jornay PM anticipated to generate net sales of at least $190 million to $200 million [15][17] - Adjusted EBITDA is projected to be between $455 million and $475 million, indicating strong profitability and effective cost control [17]

Economic Outlook - The upcoming employment report from the Labor Department is crucial, with expectations of weakness that could allow the Federal Reserve to cut rates later this year, positively impacting sectors like housing, autos, and construction [2][4] - Interest rates have been rising, indicating a need for a weak labor report to sustain stock market growth [2] Stock Market Performance - The Dow Jones Industrial Average has crossed 50,000, marking significant wealth creation for persistent investors over the past 44 years [3] - Moderna, Inc. has been highlighted as a strong performer, with a nearly 50% increase in January, recovering from a 95% decline from its peak in 2021 [9] Company Focus: Moderna, Inc. - Moderna is recognized for its mRNA medicines and vaccines, with ongoing developments in personalized cancer vaccines, although it remains unprofitable [9][10] - The company is expected to return to revenue growth in 2026, which is a significant development for investors [9] Company Focus: Agnico Eagle Mines Limited - Agnico Eagle is noted as the second-largest gold miner globally, with a strong recommendation to invest in gold stocks due to limited supply growth [11][12] - The company operates primarily in Canada, which is favorable for business, and gold prices have recently surpassed $5,400 an ounce, indicating a bullish outlook for the gold market [12]

Company Performance - Pelican Bay Capital Management (PBCM) reported a return of 8.5% for its Concentrated Value Strategy in Q4 2025, outperforming the Russell 1000 Value Index, which returned 3.8% [1] - For the full year, the Strategy achieved a return of 20.6%, compared to 15.9% for the Index [1] - The strong performance was attributed to AI-related stocks and commodities exposure [1] Company Addition - PBCM highlighted Zoetis Inc. (NYSE:ZTS) as a new addition to its portfolio [2] - Zoetis Inc. focuses on animal health medications, vaccines, and diagnostic products, with a market capitalization of approximately $56.165 billion [2] - As of February 4, 2026, Zoetis Inc. stock closed at $126.73 per share, with a -0.35% return in the past month and a decline of 26.07% over the past twelve months [2] Industry Insights - The global animal health market was valued at approximately $50 billion last year and is expected to grow at a rate of 5-6% per year over the next decade [3] - Growth in the animal health market is driven by trends such as pets living longer and increasing acceptance of medicines and vaccines by pet owners [3] - PBCM initiated new positions in Zoetis Inc., along with AECOM (ACM) and FactSet Research (FDS), indicating a strategic focus on high-quality companies in the animal health sector [3]

Core Viewpoint - Diamond Hill Capital's "Large Cap Fund" investor letter for Q4 2025 highlights a cautious stance on AI-driven market enthusiasm while emphasizing the attractiveness of fundamentally stable, high-quality, cash-generative businesses [1] Group 1: Market Performance - The Russell 1000 Value Index increased by 3.8% in Q4 2025, with the information technology sector rising by 11% and communication services by 9%, driven by AI optimism [1] - The Fund returned 1.41% in Q4, underperforming the Russell 1000 Value Index [1] Group 2: Zoetis Inc. Performance - Zoetis Inc. (NYSE:ZTS) is identified as a leading relative detractor for the Fund, with its stock closing at $124.94 on February 2, 2026, and a 27.46% decline over the past twelve months [2][3] - The company reduced its 2026 outlook due to fewer veterinary visits by pet owners, leading to underperformance in Q4 [3] Group 3: Investment Sentiment - Despite acknowledging Zoetis Inc.'s potential, the company is not among the 30 most popular stocks among hedge funds, with a decrease in hedge fund portfolios holding the stock from 75 to 72 [4] - The Fund believes certain AI stocks present greater upside potential and less downside risk compared to Zoetis Inc. [4]