Here's Why Zoetis Gained 10% in August
Shares of Zoetis (NYSE: ZTS) jumped 10% last month, according to data from S&P Global Market Intelligence. The animal health leader reported solid second-quarter and first-half 2019 operating results that reflected strength from recent product launches and acquisitions. Total revenue grew 8% in the first half of this year compared to the same period of 2018, although higher operating expenses and a much higher tax bill pushed net income 7% lower in that span.
Investors weren't too concerned with that development, especially considering Zoetis paid very low taxes in 2018 and that shares have walloped the returns of the broader market since their initial public offering. But the business is currently relying a little too heavily on its animal companion portfolio, which is masking weakness in its livestock portfolio.
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Source Fool.com
