Jim Cramer’s 10 Stock Picks You Need to Know

7. Zoetis Inc. (NYSE:ZTS)

Number of Hedge Fund Investors: 61

Jim Cramer has expressed a strong positive opinion about Zoetis Inc. (NYSE:ZTS). He recently had Kristin Peck on Mad Money, and he praised her as an excellent spokesperson for the company. Cramer’s admiration for Zoetis Inc. (NYSE:ZTS) is evident from his comments and the successful presentation by Peck.

“I like Zoetis very much. We recently had Kristin Peck on, and she did a great job—great spokesperson for it.”

Zoetis Inc. (NYSE:ZTS) presents a compelling investment opportunity due to its impressive financial results, innovation, and commitment to shareholders. Zoetis Inc. (NYSE:ZTS) reported strong Q2 2024 earnings with an EPS of $1.56, surpassing expectations by $0.07, and achieved an 8.3% revenue increase year-over-year. These results underscore Zoetis Inc. (NYSE:ZTS)’s robust growth and effective management, as evidenced by its high return on equity of over 50% and a net margin of approximately 26%.

With a market cap of $83.87 billion, Zoetis Inc. (NYSE:ZTS) is a leading force in the global animal health sector. Zoetis Inc. (NYSE:ZTS)’s dedication to innovation is highlighted by recent developments, such as the FDA approval of Librela™ for managing osteoarthritis pain in dogs. Additionally, Zoetis Inc. (NYSE:ZTS) has a reliable history of dividend growth and a beta of 0.86, indicating lower stock volatility relative to the market.

Polen Global Growth Strategy stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q2 2024 investor letter:

“We re-established a position in Zoetis Inc. (NYSE:ZTS) after holding a position from late 2017 to late 2021. Our sale came after a successful holding period and was solely driven by valuation, which we felt was stretched at the time. We had an opportunity to re-establish a position at a lower price than we sold in September 2021 despite Zoetis having a roughly 25% higher earnings base. In short, we’ve taken advantage of the recent dip in valuation to buy back what we think is an attractive safety business capable of sustaining durable low double-digit earnings growth.”