Zoetis shares drop 37% YTD after weak earnings and competitive pressures, trading near five-year lows.

Zoetis (ZTS) shares have fallen 37% year-to-date, hitting a five-year low after reporting weaker-than-expected earnings due to US companion animal market weakness, generic competition, and fewer clinic visits. Despite these challenges, the company maintains its 2026 guidance with projected revenues of $9.68–$9.96 billion and adjusted EPS of $6.85–$7.00, supported by upcoming product launches. The stock trades at 12.5 times forward earnings with a 2.6% dividend yield, but further declines may occur before it becomes an attractive buy. The analyst holds a neutral rating given the current headwinds and valuation.