Key Stats for Zoetis Stock
- Past-Week Performance: 0.5%
- 52-Week Range: $115 to $177
- Current Price: $128
What Happened to Zoetis Stock?
Zoetis (ZTS) shares gained 4.4% in premarket trading on February 12 to $134.68, briefly recovering from a 52-week range that bottomed at $115.25 after the stock shed roughly 23% through 2025.
The company reported Q4 adjusted EPS of $1.48 against estimates of $1.40 and revenue of $2.39 billion beating the $2.36 billion consensus, while issuing 2026 adjusted EPS guidance of $7.00 to $7.10, well above Wall Street’s $6.80 expectation.
The guidance beat reflected confidence in Zoetis’ diversified portfolio, particularly the Simparica franchise which crossed $1 billion in U.S. annual sales, diagnostics growing 13% operationally, and livestock delivering 8% organic operational revenue growth for the full year.
Gains faded and shares dropped roughly 5% after CEO Kristin Peck flagged ongoing pressure on Gen Z and Millennial pet owners pulling back on routine vet visits, while Librela posted a steep 32% decline in Q4 U.S. revenue to just $36 million.
J.P. Morgan analyst Chris Schott said investor expectations heading into the print were “very low” given competition concerns, and noted the 2026 forecast should alleviate near-term growth worries, while the median analyst price target sits at $156.44, implying roughly 21% upside from the February 11 close.
The broader story remains one of a company navigating peak competitive pressure in dermatology and OA pain while leaning on pipeline depth, with 12 potential blockbuster candidates in development and Lenivia’s U.S. FDA approval targeted for 2027.
Where is the ZTS Stock Headed?
Despite the post-earnings selloff, Zoetis’ above-consensus 2026 guidance of $7.00 to $7.10 in adjusted EPS signals that the company’s diversified portfolio is absorbing competitive pressure better than the market feared heading into the print.
The fundamental case rests on a clear earnings acceleration trajectory, with normalized EPS growing from $5.92 in 2024 to an estimated $7.02 in 2026, representing 9.5% year-over-year growth while net income margins expand steadily toward 30.2%.
Wall Street’s 16 analysts maintain a mean price target of $151.00 as of February 19, with 7 Buys and 4 Outperforms against 9 Holds, implying roughly 18.6% upside from the current $127.28 close.
The target range tells a wide story, spanning from a $130.00 floor to a $190.00 ceiling, reflecting genuine disagreement about how quickly U.S. companion animal trends normalize and whether Librela can return to growth.
Zoetis’ mid-case valuation model, built on 4.4% revenue CAGR and 6.4% EPS CAGR through 2031, prices the stock at $180.44, a level that looks increasingly achievable once Lenivia’s U.S. approval lands in 2027 and long-acting OA pain products begin contributing internationally, delivering a 7.4% annualized IRR from current levels.
The primary risk is multiple compression, with the P/E already contracting from 21x to 19x over three months, and the valuation model itself projecting continued modest P/E headwinds of roughly 1.1% annually even in the mid case.
At $127.28, Zoetis trades at a meaningful discount to both the Street’s mean target and the model’s fair value, making it a fundamentally undervalued compounder for investors willing to wait out near-term U.S. softness and competitive noise.
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