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ZTSZoetis Inc.Sell5.7·$79.30-0.81%
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Zoetis Inc. (ZTS) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5Moderate Confidence

Healthcare · Drug Manufacturers - Specialty & Generic

Sell if holding. Multiple concerning factors at $79.30: Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%).

Zoetis is a global animal health company selling medicines, vaccines, and diagnostics for companion animals (70% of revenue) and livestock (29%) across approximately 45 countries. US revenue was $5,097M (54%) and International $4,254M (45%) of ~$9.4B in 2025 revenue, spanning... Read more

QualityF-score8 / 9FCF yield5.31%
IncomeYield2.65%(5y avg 0.95%)Payout33.28%sustainable
Stop $74.27Target $112.13(analyst − 10%)A.R:R 6.5:1
Analyst target$124.59+57.1%17 analysts
$112.13our TP
$79.30price
$124.59mean
$160

Sell if holding. Multiple concerning factors at $79.30: Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%). Chart setup: Death cross but MACD improving, RSI 49. Score 5.7/10, moderate confidence.

Passes 8/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 49d clear, semi cycle peak clear, materials cycle peak clear). Fails on death cross (50MA < 200MA). Suitability: moderate.

10-K grounded · weekly refresh

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.

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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.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Aug 4, 202649d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
High-quality business
Attractive valuation
Risks
Concentration risk — Geographic: United States (54.0%)
Concentration risk — Product: companion animal products (70.0%)
Leverage penalty (D/E 2.9): -1.5

Key Metrics

P/E (TTM)13.1
P/E (Fwd)10.8
Mkt Cap$33.5B
EV/EBITDA10.0
Profit Mgn28.0%
ROE67.7%
Rev Growth2.9%
Beta0.74
Dividend2.65%
Rating analysts24

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C3.10bearish
IV41%normal
Max Pain$260+227.9% vs spot

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 lines (Simparica/Simparica Trio, Apoquel, Cytopoint, Librela, ceftiofur)42%
    10-K Item 1A: 'our five top-selling products and product lines, Simparica/Simparica Trio ... contributed approximately 42% of our revenue in 2025'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
3.2
Earnings Growth
3.2

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
0.0
Support Resistance
4.5
Bollinger
5.2
GatesDeath cross (50MA < 200MA)Momentum 4.6<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.6>=4.5A.R:R 6.5 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 49d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
49 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $74.87Resistance $82.98

Price Targets

$74
$112
A.Upside+41.4%
A.R:R6.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-04 (49d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ZTS stock a buy right now?

Sell if holding. Multiple concerning factors at $79.30: Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%). Chart setup: Death cross but MACD improving, RSI 49. Prior stop was $74.27. Score 5.7/10, moderate confidence.

What is the ZTS stock price target?

Take-profit target: $112.13 (+41.3% upside). Prior stop was $74.27. Stop-loss: $74.27.

What are the risks of investing in ZTS?

Concentration risk — Geographic: United States (54.0%); Concentration risk — Product: companion animal products (70.0%); Leverage penalty (D/E 2.9): -1.5.

Is ZTS overvalued or undervalued?

Zoetis Inc. trades at a P/E of 13.1 (forward 10.8). TrendMatrix value score: 7.5/10. Verdict: Sell.

What do analysts say about ZTS?

24 analysts cover ZTS with a consensus score of 3.8/5. Average price target: $125.

What does Zoetis Inc. do?Zoetis is a global animal health company selling medicines, vaccines, and diagnostics for companion animals (70% of...

Zoetis is a global animal health company selling medicines, vaccines, and diagnostics for companion animals (70% of revenue) and livestock (29%) across approximately 45 countries. US revenue was $5,097M (54%) and International $4,254M (45%) of ~$9.4B in 2025 revenue, spanning roughly 300 product lines under brands including Simparica, Apoquel, and Cytopoint.

Related stocks: NBIX (Neurocrine Biosciences, Inc.) · INDV (Indivior Pharmaceuticals, Inc.) · KNSA (Kiniksa Pharmaceuticals Interna) · TEVA (Teva Pharmaceutical Industries ) · LNTH (Lantheus Holdings, Inc.)
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