Zoetis Inc . (NYSE:ZTS), the renowned livestock medication company experienced a near 5% surge in shares during Thursday's trading session following the announcement of its Q3 FY2023 results. The company's EPS of $1.36 for the quarter met Wall Street's expectations, while its revenue saw a year-on-year boost of 7% to reach $2.2 billion, surpassing analysts' predictions by $30 million. This revenue increase was primarily fueled by an 11% demand increase for companion animal products such as dog and cat medicines.
Despite this positive performance, Zoetis' stock closed at $151.44 during the last trading session on Friday, marking a decrease of -3.54%. The stock traded at a volume of 7.25 million, with its 52-week high remaining at $194.99, down by -28.76%, but still 18.02% above its 52-week low of $124.15.
Analysts have given Zoetis a consensus recommendation of Buy, with a mean rating of 1.35 and a consensus price target of $222.04, implying a potential 31.8% increase to the stock's current value. Despite trading red over the past five days and hitting a weekly high of $162.29 on Wednesday, the company has outperformed competitors with shares down -14.79% over the last six months but boasting a year-to-date growth rate higher than industry average at 10.66%.
The company's valuation currently stands at $69.71B with an average intraday trading volume of about two million shares over the last ten days. Zoetis has also registered a year-to-date price performance of 3.34%. Short interest in Zoetis saw shorts transact 2.98 million shares and set a 1.9 days time to cover.
In terms of future growth, revenue is forecasted to grow by 12.40% this quarter before jumping 15.70% for the next one, with revenue forecast for the current quarter at $2.18 billion and for the next quarter at $2.21 billion, according to the Wealth Building Report by StockWire News. Zoetis also holds a forward dividend ratio of 1.49, with the share yield ticking at 0.99%.
Zoetis insiders hold 0.20% of total outstanding shares, while institutional holders own 94.62% of the shares at a 94.81% float percentage. Vanguard Group Inc and Blackrock (NYSE:BLK) Inc are the top two institutional shareholders, holding over 39.74 million and 38.17 million shares respectively.
Accounting for foreign exchange rates, Zoetis adjusted its full-year forecast, projecting 2023 revenues between $8.475B and $8.55B. The company's five-year growth patterns show that annual earnings grew an estimated 20.76% for the past five-year period.
InvestingPro Insights
Drawing from InvestingPro's real-time data, Zoetis Inc. exhibits a robust market cap of $74.87B USD, a P/E ratio of 32.8, and an impressive revenue of $8222M USD for the last twelve months as of Q2 2023. These figures reflect the company's strong financial position and profitability.
InvestingPro Tips provide further insight into the company's performance. Management's aggressive share buyback strategy underscores their confidence in the company's future. Moreover, the company's accelerating revenue growth and consistently increasing earnings per share signal a positive trajectory for investors.
Additionally, Zoetis' high return on invested capital and the fact that it has raised its dividend for 11 consecutive years demonstrate its commitment to providing value to its shareholders. It's worth noting that InvestingPro offers a wealth of additional tips, with 17 more available for Zoetis alone.
In conclusion, Zoetis Inc.'s strong financial performance, coupled with its strategic growth initiatives, make it a compelling consideration for investors. For more detailed insights and tips, consider exploring InvestingPro's offerings.
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