AstraZeneca plc (ADR) (AZN): Do Major Drug Manufacturers Have Room to Grow?

3. Zoetis Inc (NYSE:ZTS) has existed in one form or another since the 1950s, but the company only went public in 2012. While certain recent IPOs have produced less than stellar results, Zoetis is past the point where early adopters are clamoring for its shares the way they do on a stock’s first few days. I won’t recommend a company trading for 35 times earnings, but I will suggest that you keep an eye on Zoetis.

The bottom line

The verdict is in: there is a huge degree of potential for companies that are already massive. There is usually a large market for companies to grow within, and often a big company has the cash flow to navigate this market successfully. When you can find a good deal on a great company, don’t hesitate just because the firm is already huge.

Chris Hodge has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Do Major Drug Manufacturers Have Room to Grow? originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.