Zoetis is a high-quality animal health business with 68% return on equity, 28% net margins, and a 3-for-4 earnings beat streak — but an extraordinary put-to-call ratio of 18.50, a confirmed death-cross technical pattern, and heavy concentration in companion animal products (70%) create a profile where the long-term quality case is strong but the near-term setup is unusually risky.
Thesis pillars
- Top Decile Quality Metrics→Stable
- Companion Animal Concentration 70pct↓Deteriorating
- Extreme Put Call Ratio Warning↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 12, 2026
Zoetis Inc. (ZTS) Stock Analysis
Recovery setup
Healthcare · Drug Manufacturers - Specialty & Generic
Wait for pullback to $69.71. Price sits above the model's entry target of $69.71; the risk/reward becomes favorable on a pullback. Key risks: Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%).
Zoetis discovers and commercializes animal health medicines, vaccines, and diagnostics across eight species, organized into U.S. ($5,097 million, 54% of 2025 revenue) and International ($4,254 million, 45%) segments. Companion animal products — led by Simparica/Trio, Apoquel,... Read more
Wait for pullback to $69.71. Price sits above the model's entry target of $69.71; the risk/reward becomes favorable on a pullback. Key risks: Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%). Chart setup: Death cross but MACD improving, RSI 64. Fundamentals strong but target reached (-0.9% upside). Wait for pullback. Score 5.3/10, moderate confidence.
Passes 4/9 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and earnings proximity 7d<=7d. Suitability: speculative.
About Zoetis Inc.
About Zoetis Inc.
Zoetis generated $5,097 million in U.S. revenue and $4,254 million in international revenue during fiscal 2025, representing 54% and 45% of consolidated sales respectively, with companion animal products contributing approximately 70% of total revenue. The five top-selling product lines — Simparica/Simparica Trio, Apoquel/Apoquel Chewable, Cytopoint, Librela, and the ceftiofur line — contributed 42% of 2025 revenue collectively, and the top ten product lines reached 57%. The company directly markets products in approximately 45 countries, with sales in more than 100 countries overall.
Zoetis sells through veterinarians and livestock producers via direct sales forces, with no single distributor named as dominant in the filing. Companion animal revenue, at 70% of total sales, is concentrated in three therapeutic categories: dermatology (Apoquel, Cytopoint), parasiticides (Simparica/Simparica Trio), and pain management (Librela, Solensia). Livestock revenue, at approximately 29% of total, includes $713 million in antibacterial sales in 2025, subject to use restrictions across the U.S., EU, U.K., China, and Vietnam. Multiple companies have launched generics against Rimadyl chewable and Draxxin; U.S. sales of Draxxin fell 66% since generic entry and Rimadyl chewable fell 39%, illustrating the loss-of-exclusivity risk embedded in the livestock portfolio. The company does not rely on a single distributor and markets products through veterinary practices, wholesalers, and internet-based retailers.
Show full overview
The top-five product line dependency represents the most concentrated earnings exposure: Simparica/Simparica Trio at 16% of 2025 revenue and Apoquel/Apoquel Chewable at 12% together account for 28%, with Cytopoint, Librela, and the ceftiofur line bringing the top-five total to 42%. The 10-K identifies safety concerns, manufacturing disruption, regulatory proceedings, or competing product introductions as risks that could have a more significant impact to results of operations for these specific lines. Any single adverse event in this product tier — safety labeling change, supply disruption, or accelerated generic entry — could materially shift reported earnings, making these franchises both the core revenue pillar and the primary concentration risk.
See also: Healthcare · Drug Manufacturers - Specialty & Generic
From Zoetis Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated 2026-10-29Recent Developments — Zoetis Inc.
Latest news
- NEWS Zoetis (ZTS) Slid on Weak Response to Great Ideas - Yahoo Finance — Yahoo Finance negative
- NEWS Opal Capital LLC Has $3.01 Million Stock Position in Zoetis Inc. $ZTS - MarketBeat — MarketBeat neutral
- NEWS Here's why Zoetis (ZTS) is a strong value stock - MSN — MSN positive
- NEWS Zoetis (ZTS) Stock Looks Reasonable Despite Its 61% Five Year Slide - Simply Wall St — Simply Wall St neutral
- NEWS Zoetis (ZTS) Stock May Be Undervalued After FDA Approval News - Yahoo Finance — Yahoo Finance positive
Generated 2026-10-29T11:48:40Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicUnited States54%10-K Item 1: 'United States (U.S.) with revenue of $5,097 million, or 54% of total revenue for the year ended December 31, 2025'
- HIGHProductcompanion animal products70%10-K Item 1: 'Companion animal products represented approximately 70% of our revenue for the year ended December 31, 2025'
- MEDIUMProducttop five product lines42%10-K Item 1A: 'our five top-selling products and product lines...contributed approximately 42% of our revenue in 2025'
Material Events(8-K, last 90d)
- 2026-05-22Item 5.02LOWLouise M. Parent retired from the Zoetis Board of Directors effective May 20, 2026, prior to the 2026 Annual Meeting, in accordance with the company's director retirement policy. No reason cited beyond policy compliance. No successor named.SEC filing →
- 2026-05-22Item 5.07LOWZoetis held its 2026 Annual Meeting on May 20, 2026 with 379,034,516 shares present (90.13% of voting power). Shareholders voted on five proposals as described in the April 8, 2026 proxy statement. Routine AGM; no contested matters noted.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -0.2% YoY. Growth thesis broken unless recovery story develops.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $69.71. Price sits above the model's entry target of $69.71; the risk/reward becomes favorable on a pullback. Key risks: Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%). Chart setup: Death cross but MACD improving, RSI 64. Fundamentals strong but target reached (-0.9% upside). Wait for pullback. Analyst target $77.10 reached (−0.9%), stop $66.71 (−16.6%), A.R:R -0.1:1. Score 5.3/10, moderate confidence.
Analyst target $77.10 reached (−0.9% from $77.80); no take-profit level is published. Analyst target $77.10 reached (−0.9%), stop $66.71 (−16.6%), A.R:R -0.1:1. Stop-loss: $66.71.
Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%); Analyst target reached - limited upside remaining.
Zoetis Inc. trades at a P/E of 12.8 (forward 12.1). TrendMatrix value score: 6.5/10. Verdict: Buy (Wait for Entry).
23 analysts cover ZTS with a consensus score of 3.6/5. Average price target: $89.
What does Zoetis Inc. do?Zoetis discovers and commercializes animal health medicines, vaccines, and diagnostics across eight species, organized...
Zoetis discovers and commercializes animal health medicines, vaccines, and diagnostics across eight species, organized into U.S. ($5,097 million, 54% of 2025 revenue) and International ($4,254 million, 45%) segments. Companion animal products — led by Simparica/Trio, Apoquel, Cytopoint, and Librela — drove approximately 70% of 2025 revenue, with the five top-selling lines collectively accounting for 42%.