Zoetis Inc. (ZTS), with a market cap of $56.3 billion, is a leading animal health company that discovers, develops, manufactures, and commercializes a broad portfolio of medicines, vaccines, diagnostic products, and precision health solutions for livestock and companion animals worldwide. The company is headquartered in Parsippany, New Jersey.

Shares of the company have underperformed the broader market over the past 52 weeks. ZTS has decreased 27.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.2%. However, shares of Zoetis have gained 1.3% on a YTD basis, compared to SPX’s marginal decline.

Looking closer, shares of the animal health company have also lagged behind the State Street Health Care Select Sector SPDR ETF’s (XLV) 5.4% gains over the past 52 weeks. The ETF has surged 1.1% on a YTD basis.

Over the past year, Zoetis’ stock has declined noticeably due to a mix of company-specific and broader market factors. Investor sentiment has been weakened by safety concerns and slowing sales of key companion-animal drugs, which are major revenue drivers and have faced heightened regulatory scrutiny, leading to weaker growth. Also, increased competition and fewer near-term new product catalysts contributed to pressure on the share price.

In the third quarter of 2025, Zoetis reported revenue of about $2.4 billion, representing roughly just a 1% year-over-year increase.

For the fiscal year 2025, analysts expect ZTS’s EPS to grow 7.1% year-over-year to $6.34. The company’s earnings surprise history is promising. It topped the consensus estimates in the last four quarters.

Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.” 

This configuration is less bullish than three months ago, when there were 11 “Strong Buy” ratings and an overall “Strong Buy” rating.

On Jan. 22, 2026, Piper Sandler analyst David Westenberg downgraded Zoetis from “Overweight” to “Neutral” and cut the firm’s price target to $135 from $190.

The mean price target of $152.27 represents a premium of 20.2% to ZTS’ current price. The Street-high price target of $200 suggests a 57.8% potential upside.

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