We recently published a list of Jim Cramer Talked About These 10 Stocks Recently. In this article, we are going to take a look at where Zoetis Inc. (NYSE:ZTS) stands against other stocks that Jim Cramer discussed recently.
On Tuesday, Jim Cramer, host of Mad Money, broke down the day’s market movements as he pointed to rising bond yields as the main force behind a series of notable shifts in stock performance.
“Every day around here, we have a referendum on stocks, and you can’t let it get you down because tomorrow’s vote can always be different from today’s… Why is it like this?… Well, the answer is a mischievous one.”
READ ALSO Jim Cramer’s Recent Thoughts on These 15 Stocks and Jim Cramer Put These 12 Stocks Under the Spotlight
Cramer offered a broader perspective and explained that on most days, individual stocks respond either to the movements of other stocks or to the overall direction of the market. He said that the market, in turn, often takes its cues from the bond market, which he described as its “much larger sibling.”
On Tuesday, he noted that the bond market heavily influenced stock prices. He highlighted that every downward movement in bond prices, which translates to higher interest rates, was met with negative reactions from the stock market. According to Cramer, such a relationship meant that rising rates handed the advantage to the market bears and tipped the scales in their favor during daily trading.
“So here’s the bottom line: The good news is that rates can also go up and not just down by the time we get a budget deal. The bad news is that rates are threatening to break out to the upside. And if they can’t stay calm, if they jump to a new, higher level while Congress works on the budget bill, we’re liable to have more days like today, where you need a plethora of positive themes for any given stock to break free from the gravitational pull of these darn miserable Treasurys.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 20. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A veterinarian administering a vaccine to a herd of cattle in a farm.
Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 76
Noting that the stock seems to be “dead money”, a caller inquired about Zoetis Inc. (NYSE:ZTS) during the lightning round. In response, Cramer stated:
“It does seem to be dead money. It does seem to, but I still like, look, I’ve gotta tell you, it is dead money. I’m not going to change my view right here on the fly. I don’t see much happening in the veterinary or livestock market at this very moment that’s going to help them.”
Zoetis (NYSE:ZTS) develops and markets a wide range of animal health products, including medicines, vaccines, diagnostics, and genetic tests. Polen Capital stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q4 2024 investor letter:
“Zoetis Inc. (NYSE:ZTS) and Adobe were also notable absolute detractors. Zoetis has been posting excellent growth on the back of its pain and dermatology franchises for quite some time, and its core companion animal business has been firing on all cylinders. Despite this, the stock has come under pressure due to concerns about the growth prospects of Librela, its biologic drug for pain in dogs (as well as Solensia, the sister drug for cats). There has been some concern about the side effects of these drugs, but the data disclosed thus far shows a very low level of adverse events, with drugs that prove highly effective in treating pain. We expect strong growth from these and other drugs currently marketed by Zoetis, with more to come from its prolific pipeline. We used the recent weakness to add to our position.”
Overall, ZTS ranks 10th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of ZTS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZTS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
