Valued at a market capitalization of $34.8 billion, Parsippany, New Jersey-based Zoetis Inc. (ZTS) is a leader in the animal health space and is engaged in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions in the United States and internationally.
ZTS shares have lagged behind the broader market over the past year, declined 49.1% compared to the S&P 500 Index ($SPX) 30.8% surge. Moreover, in 2026, the stock has fallen nearly 35.5%, underperforming the SPX’s 8.1% rise as well.
Focusing on its industry benchmark, the State Street Healthcare Select Sector SPDR ETF (XLV) has risen 8.9% over the past year, outperforming the stock. In 2026, XLV has declined 6.7% and has also rallied the stock.
On May 7, ZTS stock declined 21.5% following the release of its Q1 2026 earnings, which were worse than expected. The company’s revenue came in at $2.3 billion, missing the Street’s estimates. Moreover, its adjusted EPS amounted to $1.53 and also missed Wall Street’s forecasts. Zoetis expects full-year earnings in the range of $6.85 to $7 per share, with revenue in the range of $9.68 billion to $9.96 billion.
For the current year, which ends in December, analysts expect ZTS’ EPS to rise 8.6% to $6.96 on a diluted basis. The company surpassed the consensus estimate in three of the last four quarters, while missing the mark once.
Among the 18 analysts covering ZTS stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
The configuration has grown more bullish over the past month.
On May 9, UBS analyst Andrea Alfonso maintained a “Neutral” rating on Zoetis and lowered its price target from $130 to $99.
ZTS’ mean price target of $147.75 indicates a premium of 84.3% from the current market prices. Its Street-high target of $197 suggests a robust 145.7% upside potential from current price levels.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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