Zoetis, Inc. Class A (ZTS)

Over the past six months, Zoetis's stock price has experienced some fluctuations. As of June 27, 2025, the stock price was $156.17, down 5.58% over the past 30 days and down 11.50% over the past 12 months. The stock price as of June 20, 2025, was $157.17, representing an 8.14% decline from June 21, 2024, when it was $171.09. A notable event impacting the stock was a downgrade by Stifel on June 18, 2025, changing their outlook for Zoetis from "Buy" to "Hold".

Demand for companion animal products is driven by increasing pet ownership, rising disposable income, and increased spending on pet care, suggesting stable growth with seasonal peaks for preventative treatments. Demand for livestock products is influenced by human population growth, increasing standards of living, and a focus on food quality and safety, with factors like disease outbreaks and breeding cycles influencing demand. New product launches can significantly drive demand, and Zoetis's diversification helps mitigate the impact of specific seasonal fluctuations.

Zoetis Inc. is a global animal health company that discovers, develops, manufactures, and commercializes medicines, vaccines, and diagnostic products for livestock and companion animals. Spun off from Pfizer in 2013, Zoetis is the world's largest producer of animal medicine and vaccinations. The company operates within the Healthcare sector, specifically in the Pharmaceuticals or Biotechnology industry. Zoetis's diversified business caters to eight core species: cattle, swine, poultry, fish, and sheep (livestock), and dogs, cats, and horses (companion animals). Key products include vaccines, anti-infectives, parasiticides, dermatology products, other pharmaceutical products, medicated feed additives, animal health diagnostics, biodevices, genetic tests, and precision animal health products and services. Key products that have driven strong performance include Librela for canine osteoarthritis and Simparica Trio, a leading vet-prescribed parasiticide.

Zoetis has a significant global presence, employing nearly 10,000 individuals across more than 100 countries and directly marketing its products in approximately 45 countries. Operations outside the United States account for about 50% of its total revenue. The company operates through the United States and International segments. Zoetis has a strong local presence and field force in regions like Canada and Latin America and has expanded its global footprint through strategic acquisitions and partnerships, particularly in key markets such as China and Brazil.

Zoetis has a strong brand reputation as a global leader in animal health, but it has faced challenges in the past year. The FDA issued a warning regarding Librela, citing potential side effects. Zoetis completed the divestiture of its MFA product portfolio, which could lead to short-term revenue pressures. The company has faced headwinds in China due to economic slowdown, regulatory changes, and weaker demand. Concerns about antibiotic resistance could lead to tighter regulatory frameworks. Zoetis faces potential risks from litigation matters. Despite these challenges, Zoetis continues to invest in research and development, including leveraging Generative AI to accelerate drug discovery.

Zoetis Inc. has a widely held ownership structure, with a mix of institutional, retail, and individual investors. Institutional investors own approximately 47.35% to 95.04% of the company's stock. Largest institutional shareholders include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Retail investors hold approximately 30.33% of the stock. Individual investors, including executive officers and directors, hold a smaller percentage, with insiders owning less than 1%.