Bullish signal from Tickeron’s Trend Prediction Engine for Zoetis
Zoetis (NYSE: ZTS) is a somewhat unique company in that it makes pharmaceuticals for animals. The New Jersey-based company makes drugs for all different animal species from dogs and cats to cows and horses. The company has performed extremely well in recent years, both fundamentally and in its price performance.
Zoetis just saw a bullish signal generated by the Tickeron Trend Prediction Engine on September 15. The signal calls for a gain of at least 4% within the next month and it% showed a confidence level of 74%. Past predictions for Zoetis have been successful 76% of the time.
Looking at the daily chart for the stock we see that the stock has been trending higher since December and a trend channel has formed to define the various cycles within the overall upward trend. The stock just bounced off the lower rail of the channel this week and it looks poised to move higher yet again.
Two other things that stand out on the chart are the 50-day moving average and the stochastic readings. The 5o-day is just above the lower rail of the channel and that gives the stock two potential support levels. The stochastic readings reached oversold territory last week and made a bullish crossover on September 17.
The bullish signal from Tickeron and the bullish stochastic crossover are both good signs for the stock, but there is even more evidence pointing to a move higher. The Tickeron Technical Analysis Overview shows that the lower Bollinger Band was broken on September 10. This price move signals that Zoetis may jump back above the lower band and head toward the middle band. In 29 of 42 cases where the stock price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued uptrend are 69%.
I mentioned earlier that the company has performed well from a fundamental perspective. At present the company boasts a return on equity of 77.1% and a profit margin of 32.1%. Both of those figures are excellent and well above average.
Zoetis has seen its earnings grow by an average of 25% per year over the last three years and they grew by 17% in the most recent quarterly report. Analysts expect earnings to grow by 14% in 2019 as a whole.
The Tickeron SMR rating for this company is 8, indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating for Zoetis is 2, indicating low risk on high returns. The average Profit vs. Risk Rating for the industry is 92, placing this stock better than average.
The Tickeron Price Growth Rating for Zoetis is 5, indicating outstanding price growth. Zoetis’ price has grown at a higher rate over the last 12 months as compared to S&P 500 index constituents. A rating of 1 points to highest price growth (largest percent return) while a rating of 100 points to lowest price growth (smallest percent return).
Sentiment toward Zoetis is average. There are 16 analysts covering the stock with 10 “buy” ratings, five “hold” ratings, and one “sell” rating. This puts the buy percentage at 62.5% and that is slightly below average, or slightly skewed toward the bearish side.
The short interest ratio is currently at 2.0 and that is also slightly below average, but that indicates a slight bullish skew.
Overall we see strong fundamentals, bullish signals from three different sources, and sentiment that is average. I would say thinks look pretty good for Zoetis in the coming weeks.
ZTS sees MACD Histogram just turned negative
ZTS saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 12, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 49 instances where the indicator turned negative. In of the 49 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 50-day moving average for ZTS moved below the 200-day moving average on April 12, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZTS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ZTS entered a downward trend on April 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for ZTS's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZTS advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
ZTS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ZTS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (15.314) is normal, around the industry mean (48.543). P/E Ratio (32.943) is within average values for comparable stocks, (82.883). Projected Growth (PEG Ratio) (2.871) is also within normal values, averaging (2.825). Dividend Yield (0.009) settles around the average of (0.115) among similar stocks. P/S Ratio (9.033) is also within normal values, averaging (61.364).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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