Zoetis (ZTS) closed at $74.07 in the latest trading session, marking a -1.75% move from the prior day.
Zoetis has long been viewed as a high-quality compounder. However, after reaching an all-time high of $249.27 in December 2021, the stock is now caught in a ~70% drawdown. This can be primarily attributed to the dismal performance of the company's crown jewel asset, namely the U.S. companion animal business. After delivering an impressive 25% organic growth during the full year of 2021, the U.S. companion animal business reported dismal performance in Q1-26, with an organic decline of 11%.
Zoetis wins EU approval for a single-dose poultry vaccine against Newcastle and Marek's diseases, expanding its vaccine portfolio and flock protection options.
Zoetis has seen its valuation compress dramatically, now trading at just 12x trailing earnings after a 52% 12-month share price decline. Despite decelerating growth—Q1 2026 saw just 3% revenue growth—international and livestock segments are offsetting U.S. pet care weakness. Dividend growth remains robust, with a 12-year streak and a current yield of 2.8% backed by a solid payout ratio.
In the latest trading session, Zoetis (ZTS) closed at $76.09, marking a -2.22% move from the previous day.
Zoetis (ZTS) concluded the recent trading session at $78.71, signifying a +1.88% move from its prior day's close.
Zoetis (ZTS) closed the most recent trading day at $79.57, moving 2.25% from the previous trading session.
Zoetis Inc. (ZTS) Presents at 46th Annual William Blair Growth Stock Conference Transcript
Zoetis Inc. (ZTS) Presents at Stifel Jaws & Paws Conference 2026 Transcript
Barron's Oil & Blue Chip Tips for May 2026 highlight 20 stocks, with 11 deemed 'safer' based on free cash flow yields exceeding dividend yields. Top ten by yield are projected to deliver average net gains of 36.08% by May 2027, with risk/volatility 24% below the market average. Zoetis (ZTS), Danaher (DHR), and Accenture (ACN) lead in projected returns, with ZTS estimated to net 60.33% and lower-than-market volatility.
Zoetis faces intensified US companion animal sales declines, notably from generic competition impacting key legacy drugs, Convenia and Cerenia. Despite a 30% stock drop and valuation at 12x 2026 EPS, structural headwinds from patent expirations outweigh cyclical pressures in the near term. Q1 results showed a dramatic 11% YoY decline in US companion animal sales, partially offset by international and livestock segment growth.
Zoetis Inc. (ZTS) Q1 2026 Earnings Call Transcript