Zoetis Inc Scores High in Growth Investor Model Analysis

Zoetis Inc provides a promising outlook according to the Growth Investor model, scoring 77%. The report highlights strong fundamentals but notes some issues with revenue growth in relation to EPS growth.

Date: 31-01-2025

AI Rating: 6

Evaluation of Zoetis Inc

According to the report, Zoetis Inc (ZTS) has received a favorable score of 77% using the Growth Investor model based on Martin Zweig's strategy. This high rating indicates that the company exhibits strong underlying fundamentals and appealing valuation metrics, which is usually interpreted positively by investors.

Key Findings:

P/E Ratio: The stock has passed this criterion, suggesting that its price is reasonable compared to its earnings.
Revenue Growth in Relation to EPS Growth: ZTS has failed this test, which may raise concerns for investors. It indicates that the company's revenue growth does not keep pace with its earnings per share growth.
Sales Growth Rate: The company has passed this metric, implying consistent sales performance.
Current Quarter Earnings: ZTS is performing well in terms of current quarter earnings, further supporting the positive outlook.
EPS Growth: It has passed several EPS growth tests, indicating a positive trajectory in earnings.
Long-Term EPS Growth: The company has shown consistent long-term EPS growth, which is favorable.
Total Debt/Equity Ratio: Zoetis has a manageable level of debt, marked as a pass in the criteria.

The analysis indicates that while ZTS shows several positive signs such as passing the P/E ratio, sales growth, current quarter earnings, and long-term EPS growth metrics, the failure in revenue growth relative to EPS growth may concern potential investors regarding the firm's sustainability in growing earnings.

Stocks: ZTS