Zoetis Inc. research snapshot
ZTS AI stock analysis as of the August 2, 2026 data cutoff reads Zoetis Inc. as a high-margin global animal health franchise still working through a sharp reset after price-sensitive pet owners, competitive pressure in dermatology and parasiticides, and a May 2026 guidance reset. At the July 31, 2026 close, ZTS traded at $77.29 with a verified market value near $32.40 billion, down about 48% over the past 52 weeks. The first-quarter 2026 report, released May 7, 2026, showed revenue of $2,262 million, up 3% reported and flat on an organic operational basis, adjusted net income of $646 million, and adjusted diluted EPS of $1.53. Management kept full-year 2026 guidance of $9.680 billion to $9.960 billion in revenue with 2% to 5% organic operational growth and adjusted diluted EPS of $6.85 to $7.00. Analysts keep a Buy consensus with an average target near $113, but several targets were cut in July 2026 as sentiment stayed cautious, and a securities class action adds legal overhang. This ZTS AI stock analysis is informational only and is not investment advice.
Current price
$77.29
Market cap
$32.40 billion, verified as $77.29 times 419.23 million shares outstanding
AI score
56 / 100
Rating
High-quality animal health franchise at a reset valuation, still working through softer companion animal demand, competition, and a securities lawsuit
Trend status
Neutral to stabilizing, with price holding above the 20-day and 50-day moving averages but well below the 100-day and 200-day trend lines
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Zoetis sells medicines, vaccines, diagnostics, genetic tests, biodevices, and precision animal health products across companion animal and livestock markets in more than 100 countries. | High |
| Moat | The moat comes from trusted veterinary brands, regulatory approvals, customer relationships, global scale, R&D, manufacturing, distribution, and species-specific know-how. | Medium-high |
| Management | CEO Kristin Peck has led Zoetis through portfolio expansion, new mAb launches, and the Neogen genomics deal, but the current test is restoring confidence after softer growth, competitive pressure, and a 2026 guidance reset. | Medium-high |
| Financial trend | Fiscal 2025 revenue rose 2.28% to $9.467 billion and net income rose to $2.673 billion, while Q1 2026 revenue grew 3% reported but organic operational revenue was flat with adjusted EPS of $1.53. | High |
| Valuation | At $77.29, ZTS screens near 12.66x trailing EPS, 11.09x forward EPS, 3.40x sales, 10.05x book value, 14.48x free cash flow, and a 2.74% dividend yield. | High |
| Technical trend | The stock is above its 20-day and 50-day moving averages but far below the 100-day and 200-day trend lines, with RSI near 51.90 and a 14-day ADX near 17 pointing to a weak, ranging move. | Medium |
| Risk level | Key risks include companion animal price sensitivity, competitive and generic pressure, declining vet visits, litigation, livestock cycles, foreign exchange, leverage, and multiple compression. | Medium-high |
| AI confidence | Descriptive confidence is high because source data is rich and cross-verified. Forecast confidence is lower because the Q2 2026 report on August 6, 2026 and sentiment shifts can change the picture quickly. | High data confidence |
| Investment certainty | ZTS has a stronger business than its recent chart suggests, but a margin of safety depends on evidence that 2026 guidance is achievable, competition is contained, and litigation risk stays bounded. | Medium |
ZTS AI stock forecast
The ZTS AI stock forecast uses scenario math around the July 31, 2026 close of $77.29 and the updated 2026 adjusted EPS guidance midpoint of $6.925. The three-scenario framework points to a bearish area near $55, a base area near $95, and a bullish area near $145 before dividends, using adjusted EPS growth of roughly 0%, 4%, and 8% and exit multiples of about 9x, 13x, and 17x over three years. These are scenarios, not price commitments.
$130 to $155
More likely if 2026 revenue lands near the upper half of the $9.680 billion to $9.960 billion guide, companion animal organic growth improves, new mAb launches such as Librela, Portela, and Lenivia scale, competitive pressure eases, and investors restore a high-teens earnings multiple.
$85 to $105
More likely if adjusted EPS compounds at a low single digit to mid single digit pace from the $6.925 midpoint, pricing and cost control offset softer pet-owner spending, and investors value ZTS near 13x forward scenario earnings.
$50 to $62
More likely if organic sales growth misses the 2% to 5% guide, generic and branded competition pressures key companion animal products, the securities lawsuit widens, or the market values ZTS closer to 9x lower earnings.
ZTS AI technical analysis
ZTS AI technical analysis is neutral to stabilizing as of the August 2, 2026 cutoff. The stock closed at $77.29 on July 31, 2026, holding above the 20-day moving average near $75.81 and the 50-day near $77.18, but trading well below the 100-day near $93.73 and the 200-day near $110.47. Barchart reported 14-day RSI near 51.90 and a 14-day ADX near 17, which describes a weak, ranging recovery rather than a strong trend.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $77.29 | StockAnalysis.com real-time quote at the July 31, 2026 close; market cap math uses 419.23 million shares outstanding. |
| Immediate support | $74.91 to $75.81 | The July 31, 2026 low was $74.91 and the 20-day moving average was near $75.81, forming the first support cluster. |
| Deeper support | $71.47 | StockAnalysis.com reported the 52-week low near $71.47, the main downside marker for the stabilization case. |
| Near resistance | $77.52 to $80.00 | The July 31, 2026 high was $77.52 with the round $80.00 level as the next overhead marker. |
| Higher resistance | $93.73 to $110.47 | The 100-day moving average near $93.73 and the 200-day near $110.47 define the larger resistance zone overhead. |
| Moving averages | MA20 about $75.81, MA50 about $77.18, MA100 about $93.73, MA200 about $110.47 | Barchart and StockAnalysis.com both reported these moving-average references on July 31, 2026, so the stock is above short-term and below long-term trend lines. |
| Momentum | RSI about 51.90 | 14-day RSI near 51.90 is neutral, and the 14-day ADX near 17 points to a weak, ranging trend rather than a strong directional move. |
| Volume | About 5.0 million shares on July 31 versus about 5.5 million 20-day average | StockAnalysis.com and Barchart both reported average volume near 5.5 million shares, so follow-through volume will matter for any breakout attempt. |
| Volatility | Large drawdown from the $160.48 52-week high | The stock remains down about 48% over 52 weeks, so headline and litigation sensitivity is still elevated. |
| Invalidation | Sustained close below $71.47 | A durable break below the 52-week low would weaken the stabilization case and shift attention toward bearish scenario math. |
ZTS AI trading strategy
The ZTS AI trading strategy below is a rules-based research framework, not personalized advice. It connects price action to 2026 guidance, companion animal demand, competition, litigation updates, new mAb launches, cash generation, leverage, and dividend coverage.
Look for ZTS to hold above the $74.91 to $77.29 area, reclaim the 100-day moving average near $93.73, and pair the move with evidence that Q2 2026 organic revenue growth is moving back toward the 2% to 5% guide.
A failed reclaim or sustained close below $71.47 should reduce setup confidence, especially if another earnings update or legal development points to weaker companion animal demand.
If ZTS revisits the $71.47 to $77.29 range while 2026 adjusted EPS guidance of $6.85 to $7.00 remains intact, compare the entry price with updated free cash flow, net debt, product competition, litigation disclosures, and veterinary channel commentary.
Do not treat the drawdown as automatically cheap if the decline is tied to lower organic growth, product-safety concerns, a second guidance cut, or a widening lawsuit.
Track companion animal revenue, livestock resilience, dermatology, parasiticides, Librela and new mAbs such as Portela and Lenivia, diagnostics, R&D expense, gross margin, adjusted EPS, guidance, cash, debt, repurchases, and dividend declarations.
Position sizing should reflect that ZTS is a high-quality healthcare supplier facing a growth and sentiment reset, not a risk-free consumer staple.
Investment research summary
Customers pay Zoetis because veterinarians, livestock producers, and pet owners need reliable medicines, vaccines, diagnostics, genetic tests, and animal care tools that improve animal health and productivity.
The moat is built from trusted brands, regulatory approvals, product breadth, veterinary relationships, R&D capability, global manufacturing, distribution, and data across companion animal and livestock species.
The thesis fails if pet-owner spending remains weak, veterinary visits keep falling, generics pressure Convenia and Cerenia, competition weakens dermatology and parasiticides, Librela disappoints, the securities lawsuit widens, or premium valuation does not return.
Kristin Peck has led Zoetis as a focused animal health company with continued R&D investment, new mAb launches, and the Neogen genomics acquisition. The current capital-allocation test is balancing buybacks, dividends, pipeline investment, and debt after a growth reset.
Animal health has long-term support from pet humanization, aging pets, protein demand, veterinary standards, diagnostics, and biologic innovation, but near-term demand is exposed to consumer budgets and producer economics.
The lower stock price has compressed valuation to about 12.66x trailing EPS and 14.48x free cash flow, but the margin of safety depends on whether the updated 2026 guidance is a floor or another step in a longer reset.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| ZTS price | $77.29 at the July 31, 2026 close | StockAnalysis.com real-time quote | August 2, 2026 |
| Market capitalization | $32.40 billion, computed as $77.29 times 419.23 million shares outstanding | StockAnalysis.com quote and share statistics | August 2, 2026 |
| Q1 2026 revenue | $2,262 million, up 3% reported and flat on an organic operational basis | Zoetis Q1 2026 results release | August 2, 2026 |
| Q1 2026 adjusted EPS | $1.53 adjusted diluted EPS on adjusted net income of $646 million | Zoetis Q1 2026 results release | August 2, 2026 |
| FY2026 guidance | Revenue of $9.680 billion to $9.960 billion with 2% to 5% organic operational growth and adjusted diluted EPS of $6.85 to $7.00 | Zoetis Q1 2026 results release | August 2, 2026 |
| Fiscal 2025 revenue | $9.467 billion, up 2.28% | StockAnalysis.com financials and Zoetis 2025 annual report | August 2, 2026 |
| Fiscal 2025 net income | $2.673 billion | StockAnalysis.com financials and Zoetis 2025 annual report | August 2, 2026 |
| TTM free cash flow | Operating cash flow of $2,718 million, capital expenditures of $582 million, free cash flow of $2,136 million over TTM | StockAnalysis.com cash flow statement | August 2, 2026 |
| Cash and total debt | Cash and equivalents of $1,941 million, total debt of $9,238 million, net debt of about $7.30 billion at March 31, 2026 | StockAnalysis.com balance sheet | August 2, 2026 |
| Valuation check | 12.66x trailing PE, 11.09x forward PE, 3.40x sales, 10.05x book value, 14.48x free cash flow, 2.74% dividend yield | StockAnalysis.com statistics | August 2, 2026 |
| Analyst consensus | Buy with an average target of $113.00 across 20 analysts, low $80 and high $160, median $108 | StockAnalysis.com forecast and analyst ratings | July 31, 2026 |
| Analyst rating mix, July 2026 | 8 Strong Buy, 3 Buy, 9 Hold, 0 Sell out of 20 analysts | StockAnalysis.com forecast recommendation trends | July 31, 2026 |
| Recent analyst target updates | UBS to $85 from $99 (Jul 27), Morgan Stanley to $99 from $115 (Jul 22), HSBC to $95 from $140 (Jul 6), Barclays to $85 from $136, TD Cowen to $104 from $150, Stifel to $85 from $95 | StockAnalysis.com forecast latest forecasts and news feed | July 31, 2026 |
| Short interest | 18.79 million shares short, 4.48% of shares outstanding, 2.75 days to cover | StockAnalysis.com statistics short selling | August 2, 2026 |
| 52-week range and beta | 52-week range of $71.47 to $160.48 with a beta of 0.75 | StockAnalysis.com quote | August 2, 2026 |
| Technical snapshot | 20-day SMA near $75.81, 50-day SMA near $77.18, 100-day SMA near $93.73, 200-day SMA near $110.47, 14-day RSI near 51.90 | Barchart and StockAnalysis.com technical snapshots | July 31, 2026 |
This page is an informational research tool only and is not investment advice, financial advice, or a recommendation to buy or sell ZTS. Forecast scenarios are based on available public data, source checks, and assumptions as of the stated cutoff date. They can be wrong if fundamentals, market prices, interest rates, litigation, competition, or investor sentiment change.
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