• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Healthcare

Zoetis Could Pull Back in the Short Run, but We Have Higher Price Targets Longer

ZTS discovers, develops, manufactures, and markets veterinary vaccines and medicines.
By BRUCE KAMICH
Aug 23, 2018 | 08:38 AM EDT
Stocks quotes in this article: EXAS, ZTS

Last night on his "Mad Money" show, Jim Cramer interviewed Kevin Conroy, CEO of EXACT Sciences (EXAS) , and Jim created the "Mad Money" Humanization of Pets Index," a fictional ETF to track the bull market in pet-related products. This morning on Real Money I am going to look at the charts behind the stocks in this fictional ETF.

In this daily bar chart of Zoetis Inc. (ZTS) , below, we can see a strong uptrend covering the last 12 months. There are a number of dips and pullbacks/corrections along the way up but they are all relatively short in duration. When corrections are short in terms of time it tells you that buyers are acting aggressively.

Prices are currently above the rising 50-day moving average line but that line could get tested in the days/weeks ahead. ZTS is comfortably above the rising 200-day line.

The daily On-Balance-Volume (OBV) line has been stalled since March which says that it has not confirmed the new price highs for months.

The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.

In this weekly bar chart of ZTS, below, we can see a mixed picture. Prices are in an uptrend from early 2016. Prices are above the rising 40-week moving average line.

The weekly OBV line has a downward slant since April and suggests that someone has been selling into strength.

The MACD oscillator could turn up or down in the weeks ahead.

This could be a fresh buy signal or a continuation of a take profits sell signal.

In this Point and Figure chart of ZTS, below, we can see an uptrend with a longer-term $102 price target. In the short-term we could see prices pull back further.

Bottom line strategy: ZTS is not showing signs of distribution so the big picture remains bullish but a declining OBV line suggests we could see a pullback to around $85 or so before renewed buying surfaces.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Healthcare

More from Healthcare

Boston Scientific Could Be Wicked Good in This Kind of Market

Brad Ginesin
May 24, 2022 2:13 PM EDT

Here's why this healthcare stock is a potential port in the storm for investors.

2 Biotech Stocks to Own as M&A Potentially Gathers Steam

Bret Jensen
May 11, 2022 11:35 AM EDT

I like these names as stand-alone entities but they should also attract interest from larger players.

China Faces 'Tsunami' of Covid Infection That Could Swamp the System

Alex Frew McMillan
May 11, 2022 9:00 AM EDT

A new study suggests 1.55 million people could die if China abandons zero-Covid, with the intensive-care system needing 15.6 times existing capacity.

I'm Giving Dynavax Another Shot -- a Booster Shot

Bret Jensen
May 8, 2022 7:31 AM EDT

Despite an earnings miss, DVAX show promise in several vaccine fronts and I'm doubling down on the name.

In This Environment, I'd Be More Risk Averse With Intuitive Surgical

Stephen Guilfoyle
Apr 25, 2022 10:50 AM EDT

The firm has been hurt and continues to be hurt by the effects of the pandemic.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login