Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Zoetis as such a stock due to the following factors:
- ZTS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $97.7 million.
- ZTS is making at least a new 3-day high.
- ZTS has a PE ratio of 30.8.
- ZTS is mentioned 1.97 times per day on StockTwits.
- ZTS has not yet been mentioned on StockTwits today.
- ZTS is currently in the upper 20% of its 1-year range.
- ZTS is in the upper 35% of its 20-day range.
- ZTS is in the upper 45% of its 5-day range.
- ZTS is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on ZTS:
Zoetis Inc. is engaged in the discovery, development, manufacture, and commercialization of animal health medicines and vaccines for livestock and companion animals worldwide. It operates through four segments: United States, Europe/Africa/Middle East, Canada/Latin America, and Asia/Pacific. The stock currently has a dividend yield of 0.9%. ZTS has a PE ratio of 30.8. Currently there are 9 analysts that rate Zoetis a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Zoetis has been 2.8 million shares per day over the past 30 days. Zoetis has a market cap of $18.9 billion and is part of the health care sector and drugs industry. Shares are up 15.2% year-to-date as of the close of trading on Monday.
rates Zoetis as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- Compared to other companies in the Pharmaceuticals industry and the overall market, ZOETIS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The revenue growth came in higher than the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ZOETIS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ZOETIS INC turned its bottom line around by earning $1.01 versus -$0.02 in the prior year. This year, the market expects an improvement in earnings ($1.53 versus $1.01).
- The gross profit margin for ZOETIS INC is rather high; currently it is at 68.30%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.68% trails the industry average.
- The debt-to-equity ratio is very high at 2.90 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ZTS has managed to keep a strong quick ratio of 1.58, which demonstrates the ability to cover short-term cash needs.
- You can view the full Zoetis Ratings Report.