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Cramer: Does this pet stock have legs?

After talking with Juan Alaix, the CEO of Zoetis, Cramer said "I think we're at an inflection point."

The "Mad Money" host's outlook came in response to comments made by Alaix, as he explained how his company might drive value. "We generate significant cash," he said. "We will either invest in external opportunities or internal opportunities or return cash to shareholders."

Considering shares have only gained about 2% in a year, it would seem that Zoetis needs some kind of catalyst.



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Zoetis used to be Pfizer's animal health division until it was spun off in early 2013. Now an independent company, it's a leading maker of drugs and vaccines for both livestock and pets.

Looking at recent earnings, results appear relatively bullish.

"The company delivered a solid quarter when it last reported a month ago, with earnings coming in at 38 cents per share, a one-cent beat, on slightly lighter than expected revenues that were dragged down by some one-time items," Cramer explained.

"We just disclosed our guidance and we will be growing earnings faster in 2014," added Alaix.

Given that the development of drugs for pets and livestock is a rapidly growing business and Zoetis's leadership appears to be running the business efficiently, Cramer is hopeful that the stock will soon rally.

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"As a stock, Zoetis is a nice, consistent grower with a reasonable valuation. I'm always telling you that break-ups and spin-offs can be terrific ways for companies to unlock value, but sometimes the value creation takes time," Cramer said. "Sooner or later I have to believe Zoetis will have its moment.




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