Zoetis is experiencing its worst stock decline ever, down 70% from its peak, due to weaker U.S. veterinary clinic visits and increased competition in key animal health segments. Despite aggressive competitor promotions, Zoetis maintains strong profitability with 35%-37% EBIT margins by using targeted rebates instead of cutting base prices. Trading at a low 12x P/E and offering a 7%+ free cash flow yield, the stock presents a margin of safety with a fair value estimate of $100.06. The company also provides a near 3% dividend yield and has $1.3 billion in share buyback capacity, supporting downside protection while short-term challenges persist.
Zoetis reported disappointing Q2 results with flat revenues and declining U.S. sales, but showed resilience and growth in its international and livestock segments. Management lowered its 2026 guidance, reflecting ongoing challenges. However, the stoc...
Zoetis, a leading animal health company, faces short-term challenges including weaker U.S. companion animal demand, increased competition, and margin pressure from promotions and rebates. However, long-term growth is expected due to trends like pet h...
