Zoetis stock hits historic low amid U.S. vet clinic slowdown and rising competition.

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.