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The stock price of Zoetis (NYSE: ZTS), an animal health company, has seen a 9% fall in a month, while it is down 6% in a week. The company reported upbeat Q4 results last month, with revenue of $2.0 billion and adjusted EPS of $1.00, beating the consensus estimates of $1.9 billion and $0.96, respectively. Zoetis has benefited from an increased animal adoption in the U.S., which aided its sales for parasiticide products for companion animals. However, the company’s 2022 earnings outlook of $5.14 per share fell short of the $5.21 figure per the consensus estimates.

Since last week, what has triggered the downfall in ZTS stock is a rise in bird flu cases in the U.S., and it now impacts 12 states. This may result in lower demand for poultry in the near term, weighing on the share prices of animal health companies, including Zoetis.

Looking forward, given that ZTS stock has seen a fall of 9% in a month, will it continue its downward trajectory, or is a rise imminent? Going by its historical performance, there is a higher chance of an increase in ZTS stock over the next month. Out of 66 instances in the last nine years that ZTS stock saw a twenty-one-day fall of 9% or more, 39 of them resulted in ZTS stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 39 out of 66, or about a 59% chance of a rise in ZTS stock over the coming month. See our analysis on Zoetis Stock Chances of Rise for more details.

While ZTS stock may see an increase over the next month, seeing how its peers stack up is helpful. Check out Zoetis Peers to see how ZTS stock compares against peers on metrics that matter. You can find more useful comparisons on Peer Comparisons.

Calculation of ‘Event Probability’ and ‘Chance of Rise’ using last nine years’ data

  • After moving -5.8% or more over five days- the stock rose on 65% of the occasions in the next five days.
  • After moving -4.6% or more over ten days, the stock rose in the next ten days on 65% of the occasions
  • After moving -9.1% or more over a twenty-one-day period, the stock rose on 59% of the occasions in the next twenty-one days.

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This pattern suggests a higher chance of a rise in ZTS stock over the next five days, ten days, and one month.

Zoetis Stock Return (Recent) Comparison With Peers

  • Five-Day Return: MRK highest at 0.8%; ELAN lowest at -11.8%
  • Ten-Day Return: IDXX highest at 3.9%; ZTS lowest at -4.6%
  • Twenty-One Days Return: PAHC highest at 10.1%; ZTS lowest at -9.1%

While ZTS stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Medtronic vs. IDEXX Laboratories.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Invest with Trefis Market Beating Portfolios

See all Trefis Price Estimates

Source: Forbes

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