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 in upward trend: price expected to rise as it breaks its lower Bollinger Band on March 13, 2025
ZTS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 31 cases where ZTS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ZTS's RSI Indicator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 51 cases where ZTS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 26, 2025. You may want to consider a long position or call options on ZTS as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ZTS just turned positive on March 27, 2025. Looking at past instances where ZTS's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZTS advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 288 cases where ZTS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
ZTS moved below its 50-day moving average on March 11, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ZTS crossed bearishly below the 50-day moving average on March 14, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ZTS’s price grows at a higher 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 (60.617). P/E Ratio (32.943) is within average values for comparable stocks, (90.174). Projected Growth (PEG Ratio) (2.871) is also within normal values, averaging (2.987). Dividend Yield (0.009) settles around the average of (0.122) among similar stocks. P/S Ratio (9.033) is also within normal values, averaging (20.094).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZTS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
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