NYSE:ZTS
Zoetis Inc (ZTS)
79.44
-0.08 (0.10%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
187 watching
Financials 
Technical Analysis 0
Investor Insights
Jun 8, 2026, 12:00 amThis summary was created by AI, based on 5 opinions in the last 12 months.
Zoetis Inc (ZTS-N) is facing significant headwinds as its pain management drug for pets has garnered negative attention despite regulatory approval, prompting a decrease in guidance and raising concerns about customer spending amid an economic slowdown. The stock has declined by 39% this year, reflecting investor sentiment after a weak quarterly performance. However, the company's livestock segment shows resilience, particularly as demand for protein increases in developing countries, while the pet business continues to grow at a faster pace. Analysts note that Zoetis is currently trading at a lower valuation than its historical averages, which indicates potential value despite the recent challenges. The overall outlook remains cautious as veterinary visits decline and the market for its products may be affected.
Consensus
Hold
Valuation
Undervalued
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BUY
Zoetis is new to him. They are in pet health across many species. He met management and was impressed. Pets are recession-proof sector. Americans own 110 million cats--who knew? Fascinating company.
Kevin O'LearyOwned
Consumer Products
WAIT
Regarding the price to sales part of the question he feels this metric is controversial as it is hard to determine whether the price is too high or too low. It is a very good company and he bought the IPO spin-off from Pfizer. It is in animal health and there are concerns over its valuation. Many similar companies in human health trade at lower valuations and are growing nicely. It has outperformed for a long time so it may be ready for a break. Wait and watch for people to gravitate to animal health.
David FingoldOwned
Consumer Products
TOP PICK
Livestock segment has been challenged the last 2 years, but it's a consistent business over time. Pet side has grown incredibly. Great backlog of drugs, which can come to market faster than drugs for humans. With the pullback, good time to buy. Yield is 0.80%. (Analysts’ price target is $235.45)
Paul Harris, CFAOwned
Consumer Products
PAST TOP PICK
(A Top Pick May 18/21, Down 1%) Continues to like it and will buy at these levels. Pets are almost 60% of their business and growing nicely. Pet owners are getting younger, who spend more on their pets. Also, pets are aging and so require medications which benefits ZTS. Pet spending endures during recessions, too. But the stock got ahead of itself and has fallen back now. Earnings are good, but the company reduced guidance. Revenue growth remains 9-10% and EPS 10-13%, which she believes in.
Christine PooleOwned
Consumer Products
TOP PICK
Livestock growth is slow but consistent. Pet business has shown exponential growth. Few generic pet drugs, plus drugs get to market faster. Once pets becomes a member of your family, owners can't stop spending money on them. Yield is 0.69%. (Analysts’ price target is $245.73)
Paul Harris, CFAOwned
Consumer Products
TOP PICK
Leading player in animal health. Likes healthcare, especially in higher interest rate environment. Growth in pet companion side. Pet ownership demographic is getting younger, and they spend more. R&D cycle is less onerous than for humans, patent life is longer, no strong generic competitor. Expects 10% revenue growth, double-digit earnings growth. Yield is 0.69%. (Analysts’ price target is $245.73)
Christine PooleOwned
Consumer Products
PAST TOP PICK
(A Top Pick Mar 04/21, Up 34%) Great business that will continue to grow. Animal healthcare. Tough recently, but will get back to previous levels in next couple of years. No generic drugs to compete, and they're easier to bring to market. 2B in free cashflow, great balance sheet. Great products in pipeline. He's buying here.
Paul Harris, CFAOwned
Consumer Products
TOP PICK
World's largest in animal health. Dominant player. Petcare (tremendous growth) and livestock (low growth, low margin). Nothing has fundamentally changed in its business for medium-long term growth. Caught up in the macro rotation. Expanding diagnostics business over next 1-2 years. You pay up for it, but unique position. Yield is 0.65%. (Analysts’ price target is $245.54)
Paul MacDonaldOwned
Consumer Products
BUY ON WEAKNESS
It has pulled back 10% YTD. It trades at a premium PE given its unique positioning in animal healthcare; it executes very well. She likes this sector. She's been adding shares during this pullback.
Christine PooleOwned
Consumer Products
COMMENT
Fine company that was spun out of Pfizer for the companion animal field. He bought it as an IPO but doesn't own now. It is a defensive growth stock and as mentioned before, this could become a source of cash for some investors who want to buy cyclicals. Therefore be careful about entry points. The fundamentals have not changed and the companion animal area is growing quickly. He is also bullish on agriculture.
Consumer Products
BUY ON WEAKNESS
She added on the recent pullback. Growing nicely. Patents on animal healthcare drugs are much longer than those for humans. Pet companion segment continues to grow. Younger demographics spend more on their pets.
Christine PooleOwned
Consumer Products
TOP PICK
Animal health. 2/3 of the business comes from companion animals. Interesting secular growth area in consumer discretionary. Grew business very nicely. Earnings growing mid-teens. A theme that's not going away. Great innovation pipeline. Yield is 0.49%. (Analysts’ price target is $221.39)
David BurrowsOwned
Consumer Products
TOP PICK
Leading player in animal health. Companion animals segment is more attractive than the livestock side. Millennials spend more on pets and pay more attention to their health. Attractive growth rate. Product life cycle is much longer, competition from generics is less. Potential in EMs. Well positioned in an attractive sector. Yield is 0.50%. (Analysts’ price target is $219.52)
Christine PooleOwned
Consumer Products
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