Zoetis Inc. (NYSE:ZTS) Stock May Be Priced 32% Lower Than Its True Value Estimate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 16 2025
0mins
Should l Buy ZTS?
Source: Yahoo Finance
Valuation of Zoetis: The fair value of Zoetis is estimated at US$177, indicating that the current share price of US$121 suggests a potential undervaluation of 32%.
Discounted Cash Flow Analysis: A two-stage Discounted Cash Flow (DCF) model was used to estimate the intrinsic value, taking into account future cash flows and a conservative growth rate for terminal value.
Financial Strengths and Weaknesses: Zoetis shows strong earnings growth and well-covered debt and dividends, but its dividend yield is low compared to top competitors in the pharmaceuticals market.
Investment Considerations: While the DCF model provides insights into valuation, it is important to consider other factors such as market risks, future earnings growth compared to peers, and alternative investment options.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ZTS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ZTS
Wall Street analysts forecast ZTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZTS is 154.20 USD with a low forecast of 130.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 127.420
Low
130.00
Averages
154.20
High
200.00
Current: 127.420
Low
130.00
Averages
154.20
High
200.00
About ZTS
Zoetis Inc. is a global animal health company. The Company is focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests and precision animal health. The Company operates through two segments: the United States (U.S.) and International. Within each of these operating segments, it offers a diversified product portfolio, including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics, for both companion animal and livestock customers. It directly markets its products in approximately 45 countries across North America, Europe, Africa, Asia, Australia and South America. The Company is engaged in commercializing products across eight species: dogs, cats and horses (collectively, companion animals) and cattle, poultry, swine, fish and sheep (collectively, livestock).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Zoetis Set to Report Q4 2025 Earnings
- Earnings Release Date: Animal healthcare company Zoetis is set to report its Q4 and full-year 2025 earnings on February 12, with market attention focused on whether the guidance will impact stock performance, especially after a significant drop following last November's earnings release.
- Revenue and Earnings Expectations: Analysts forecast Zoetis will achieve $2.36 billion in revenue and earnings of approximately $1.40 per share this quarter, representing only 1.9% year-over-year growth and flat earnings; however, a positive surprise could trigger a bullish response from investors.
- Market Reaction Risks: Despite Zoetis beating earnings expectations in the last four quarters, the company's previous guidance cut for full-year 2025 revenue raises uncertainties about investor reactions to future outlooks, potentially putting pressure on the stock again.
- Valuation Changes: Zoetis's current price-to-earnings ratio has fallen below 20 times, making it more attractive compared to competitor Elanco Animal Health's 23 times; however, the stock may still face further valuation compression risks until concerns about future growth are alleviated.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
Zoetis Earnings Preview: Key Insights
- Earnings Release Preview: Zoetis is set to report its Q4 and full-year 2025 earnings on February 12, with forecasts of $2.36 billion in revenue reflecting a 1.9% year-over-year growth and earnings around $1.40 per share, indicating flat earnings but market anticipation for a potential earnings beat.
- Historical Performance Insight: The company has beaten earnings expectations in the last four quarters, and after last quarter's lowered guidance, adjusted expectations may set the stage for a significant earnings surprise this time, potentially leading to a bullish market reaction.
- Market Reaction Risks: Despite the potential for strong earnings, investors may react negatively to the outlook if the company’s guidance for 2026 disappoints, particularly due to macro trends affecting its livestock business, which could lead to further declines in stock price.
- Long-term Investment Outlook: Zoetis remains a leader in its field with over a decade of steady earnings and dividend growth, and while currently trading at a valuation discount compared to Elanco Animal Health, positive surprises in results and guidance could help the stock recover from its recent slump.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
Zoetis Set to Report Q4 2025 Earnings
- Earnings Release Date: Animal healthcare company Zoetis is set to report its Q4 and full-year 2025 earnings on February 12, with market attention focused on whether the guidance will impact stock performance, especially after a significant drop following last November's earnings release.
- Revenue and Earnings Expectations: Analysts forecast Zoetis will achieve $2.36 billion in revenue and earnings of approximately $1.40 per share this quarter, representing only 1.9% year-over-year growth and flat earnings; however, a positive surprise could trigger a bullish response from investors.
- Market Reaction Risks: Despite Zoetis beating earnings expectations in the last four quarters, the company's previous guidance cut for full-year 2025 revenue raises uncertainties about investor reactions to future outlooks, potentially putting pressure on the stock again.
- Valuation Changes: Zoetis's current price-to-earnings ratio has fallen below 20 times, making it more attractive compared to competitor Elanco Animal Health's 23 times; however, the stock may still face further valuation compression risks until concerns about future growth are alleviated.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
Zoetis Earnings Preview: Key Insights
- Earnings Release Preview: Zoetis is set to report its Q4 and full-year 2025 earnings on February 12, with forecasts of $2.36 billion in revenue reflecting a 1.9% year-over-year growth and earnings around $1.40 per share, indicating flat earnings but market anticipation for a potential earnings beat.
- Historical Performance Insight: The company has beaten earnings expectations in the last four quarters, and after last quarter's lowered guidance, adjusted expectations may set the stage for a significant earnings surprise this time, potentially leading to a bullish market reaction.
- Market Reaction Risks: Despite the potential for strong earnings, investors may react negatively to the outlook if the company’s guidance for 2026 disappoints, particularly due to macro trends affecting its livestock business, which could lead to further declines in stock price.
- Long-term Investment Outlook: Zoetis remains a leader in its field with over a decade of steady earnings and dividend growth, and while currently trading at a valuation discount compared to Elanco Animal Health, positive surprises in results and guidance could help the stock recover from its recent slump.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
