Stock Price Trends

Zoetis Inc (ZTS)

Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 38.02% per annum.
  • ZTS price at the close of March 31, 2025 was $164.65 and was higher than the top border of the primary price channel by $8.88 (5.70%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 18.27% per annum.
  • ZTS price at the close of March 31, 2025 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of ZTS price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: September 4, 2024
End date: January 23, 2025

a = 7.3933

b = -0.0013

s = 0.0233

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0013) – 1
= -38.02%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0233) – 1
= 9.75%

September 4, 2024 calculations

Top border of price channel:

Exp(Y1,113)
= Exp(a + b × X1,113 + 2 × s)
= Exp(a + b × 1,617 + 2 × s)
= Exp(7.3933 + -0.0013 × 1,617 + 2 × 0.0233)
= Exp(5.3210)
= $204.58

Bottom border of price channel:

Exp(Y1,113)
= Exp(a + b × X1,113 – 2 × s)
= Exp(a + b × 1,617 – 2 × s)
= Exp(7.3933 + -0.0013 × 1,617 – 2 × 0.0233)
= Exp(5.2279)
= $186.41

January 23, 2025 calculations

Top border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 + 2 × s)
= Exp(a + b × 1,758 + 2 × s)
= Exp(7.3933 + -0.0013 × 1,758 + 2 × 0.0233)
= Exp(5.1362)
= $170.07

Bottom border of price channel:

Exp(Y1,209)
= Exp(a + b × X1,209 – 2 × s)
= Exp(a + b × 1,758 – 2 × s)
= Exp(7.3933 + -0.0013 × 1,758 – 2 × 0.0233)
= Exp(5.0432)
= $154.96

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 38.02% per annum.
  • ZTS price at the close of March 31, 2025 was $164.65 and was higher than the top border of the primary price channel by $8.88 (5.70%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: October 24, 2024
End date: March 31, 2025

a = 6.0979

b = -0.0006

s = 0.0270

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -18.27%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0270) – 1
= 11.41%

October 24, 2024 calculations

Top border of price channel:

Exp(Y1,149)
= Exp(a + b × X1,149 + 2 × s)
= Exp(a + b × 1,667 + 2 × s)
= Exp(6.0979 + -0.0006 × 1,667 + 2 × 0.0270)
= Exp(5.2304)
= $186.87

Bottom border of price channel:

Exp(Y1,149)
= Exp(a + b × X1,149 – 2 × s)
= Exp(a + b × 1,667 – 2 × s)
= Exp(6.0979 + -0.0006 × 1,667 – 2 × 0.0270)
= Exp(5.1224)
= $167.74

March 31, 2025 calculations

Top border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(6.0979 + -0.0006 × 1,825 + 2 × 0.0270)
= Exp(5.1431)
= $171.25

Bottom border of price channel:

Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(6.0979 + -0.0006 × 1,825 – 2 × 0.0270)
= Exp(5.0351)
= $153.71

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 18.27% per annum.
  • ZTS price at the close of March 31, 2025 was inside the secondary price channel.