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Here's How Much a $1000 Investment in Zoetis Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Zoetis (ZTS - Free Report) ten years ago? It may not have been easy to hold on to ZTS for all that time, but if you did, how much would your investment be worth today?
Zoetis' Business In-Depth
With that in mind, let's take a look at Zoetis' main business drivers.
Florham Park, NJ-based Zoetis Inc. came into existence following Pfizer’s decision to spin off its animal health business. The entity started trading on NYSE on Feb 1, 2013, under the name Zoetis. The company is a leader in the animal health space with a focus on both livestock and companion animals in seven major product categories: vaccines, anti-infectives, parasiticides, dermatology, other pharmaceutical products, medicated feed additives and animal health diagnostics. Zoetis has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).
The outstanding growth rate in the companion animal medicines, vaccines and diagnostics sector is being driven by economic development, related increases in disposable income and a rise in pet ownership and spending on pet care.
Zoetis has been working on strengthening its product portfolio through acquisitions and deals. In 2022, the company completed the acquisition of Jurox, an animal health company based in Australia, which brings the company a range of companion animal and livestock products and provides the company with future growth opportunities, manufacturing capacity and increased capabilities in Australia. Also in 2022, the company acquired Basepaws, a petcare genetics company that provides pet owners with genetic tests, analytics and early health risk assessments, which help pet owners and veterinarians understand an individual pet’s risk for disease and can lead to more meaningful engagements and increased likelihood of early detection and treatment of disease.
Zoetis has consolidated its four-region structure into a two-region structure, namely the United States and International. Total revenues grew 4% year over year to $8.1 billion in 2022. The United States contributed 53% of total revenues in 2022 while international revenues contributed the rest.
In 2022, Zoetis’ two top-selling products and product lines were Simparica/Simparica Trio and Apoquel, which contributed approximately 12% and 10%, respectively, of its revenue. Also in 2022, Zoetis recorded 15 products and product lines with revenues of $100 million or more.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Zoetis ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in July 2013 would be worth $6,230.34, or a 523.03% gain, as of July 26, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 170.22% and gold's return of 41.77% over the same time frame.
Analysts are forecasting more upside for ZTS too. Zoetis has an innovative portfolio of pet care parasiticides, including Simparica Trio and key dermatology products that maintain momentum for the company. The strong uptake of Librela and Solensia in Europe, its new monoclonal antibody therapies for osteoarthritis pain in dogs and cats, is encouraging. The launch of innovative products bolstered the portfolio and should fuel growth. The recent approval of the Apoquel chewable tablet for dermatitis indication should boost sales. However, the company had earlier faced supply challenges which impacted demand. Despite constraints being eased out, a similar situation will restrain growth. Stiff competition from animal health business wings of Merck and Bayer remains a woe. Shares have outperformed in the industry in the year-to-date period. Our estimates for Zoetis’ revenues suggest a CAGR growth of 7.5% over the next three years. The stock has jumped 11.41% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Zoetis Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Zoetis (ZTS - Free Report) ten years ago? It may not have been easy to hold on to ZTS for all that time, but if you did, how much would your investment be worth today?
Zoetis' Business In-Depth
With that in mind, let's take a look at Zoetis' main business drivers.
Florham Park, NJ-based Zoetis Inc. came into existence following Pfizer’s decision to spin off its animal health business. The entity started trading on NYSE on Feb 1, 2013, under the name Zoetis. The company is a leader in the animal health space with a focus on both livestock and companion animals in seven major product categories: vaccines, anti-infectives, parasiticides, dermatology, other pharmaceutical products, medicated feed additives and animal health diagnostics. Zoetis has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).
The outstanding growth rate in the companion animal medicines, vaccines and diagnostics sector is being driven by economic development, related increases in disposable income and a rise in pet ownership and spending on pet care.
Zoetis has been working on strengthening its product portfolio through acquisitions and deals. In 2022, the company completed the acquisition of Jurox, an animal health company based in Australia, which brings the company a range of companion animal and livestock products and provides the company with future growth opportunities, manufacturing capacity and increased capabilities in Australia. Also in 2022, the company acquired Basepaws, a petcare genetics company that provides pet owners with genetic tests, analytics and early health risk assessments, which help pet owners and veterinarians understand an individual pet’s risk for disease and can lead to more meaningful engagements and increased likelihood of early detection and treatment of disease.
Zoetis has consolidated its four-region structure into a two-region structure, namely the United States and International. Total revenues grew 4% year over year to $8.1 billion in 2022. The United States contributed 53% of total revenues in 2022 while international revenues contributed the rest.
In 2022, Zoetis’ two top-selling products and product lines were Simparica/Simparica Trio and Apoquel, which contributed approximately 12% and 10%, respectively, of its revenue. Also in 2022, Zoetis recorded 15 products and product lines with revenues of $100 million or more.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Zoetis ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in July 2013 would be worth $6,230.34, or a 523.03% gain, as of July 26, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 170.22% and gold's return of 41.77% over the same time frame.
Analysts are forecasting more upside for ZTS too. Zoetis has an innovative portfolio of pet care parasiticides, including Simparica Trio and key dermatology products that maintain momentum for the company. The strong uptake of Librela and Solensia in Europe, its new monoclonal antibody therapies for osteoarthritis pain in dogs and cats, is encouraging. The launch of innovative products bolstered the portfolio and should fuel growth. The recent approval of the Apoquel chewable tablet for dermatitis indication should boost sales. However, the company had earlier faced supply challenges which impacted demand. Despite constraints being eased out, a similar situation will restrain growth. Stiff competition from animal health business wings of Merck and Bayer remains a woe. Shares have outperformed in the industry in the year-to-date period. Our estimates for Zoetis’ revenues suggest a CAGR growth of 7.5% over the next three years.
The stock has jumped 11.41% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.