Polen Global Growth Added Zoetis (ZTS) to its Portfolio on Dip
Polen Capital, an investment management company, released its “Polen Global Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the second quarter, AI remained the dominant narrative in markets. The Strategy returned -1.63% gross (-1.91% net) compared to the MSCI ACW Index’s 2.87% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Global Growth Strategy highlighted stocks like Zoetis Inc. (NYSE:ZTS) in its Q2 2024 investor letter. Zoetis Inc. (NYSE: ZTS) is involved in the research, development, manufacturing, and sale of animal health medications, vaccines, and diagnostic products and services. The one-month return of Zoetis Inc. (NYSE:ZTS) was 3.74%, and its shares lost 5.30% of their value over the last 52 weeks. On July 26, 2024, Zoetis Inc. (NYSE:ZTS) stock closed at $179.84 per share with a market capitalization of $82.06 billion.
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."
A veterinarian administering a vaccine to a herd of cattle in a farm.
Zoetis Inc. (NYSE:ZTS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Zoetis Inc. (NYSE:ZTS) at the end of the first quarter which was 80 in the previous quarter. Zoetis Inc. (NYSE:ZTS) achieved a revenue of $2.2 billion in the first quarter, marking a 10% growth on a reported basis and 12% on an operational basis. While we acknowledge the potential of Zoetis Inc. (NYSE:ZTS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Zoetis Inc. (NYSE:ZTS) and shared the list of best feminist stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.