Zoetis Stock: Is Wall Street Bullish or Bearish?

Parsippany, New Jersey-based Zoetis Inc. (ZTS) discovers, develops, manufactures, and commercializes medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry. Valued at $30.5 billion by market cap, the company also offers parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics. 

Shares of this world’s leading animal health company have notably underperformed the broader market over the past year. ZTS has declined 50.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.4%. In 2026, ZTS stock is down 41.9%, compared to the SPX’s 13.3% rise on a YTD basis.

Narrowing the focus, ZTS’ underperformance is also apparent compared to the ProShares Pet Care ETF (PAWZ). The exchange-traded fund has declined about 8.3% over the past year. Moreover, the ETF’s 5.4% dip on a YTD basis outshine the stock’s double-digit losses over the same time frame.

Zoetis underperformed as intensifying competition and declining U.S. veterinary clinic visits weighed on its Companion Animal business. CEO Kristin Peck noted visits fell again amid pet owners becoming more price-sensitive, pressuring key franchises like Apoquel and Simparica Trio. Zoetis cut full-year revenue and profit guidance and is responding with sharper commercial execution, cost discipline, and accelerated innovation. Moreover, management expects U.S. Companion Animal headwinds to persist into the second half.

On Aug. 6, ZTS shares closed up by 3.9% after reporting its Q2 results. Its adjusted EPS of $1.87 beat Wall Street expectations of $1.84. The company’s revenue was $2.47 billion, falling short of Wall Street forecasts of $2.49 billion. ZTS expects full-year adjusted EPS in the range of $6.15 to $6.25, and revenue in the range of $9.1 billion to $9.3 billion.

For the current fiscal year, ending in December, analysts expect ZTS’ EPS to grow marginally to $6.43 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion. 

Among the 18 analysts covering ZTS stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.”

This configuration is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”

On Aug. 8, Jonathan Block from Stifel Financial Corp. (SF) maintained a “Hold” rating on ZTS, with a price target of $85, implying a potential upside of 17% from current levels.

The mean price target of $106 represents a 45.9% premium to ZTS’ current price levels. The Street-high price target of $160 suggests an ambitious upside potential of 120.2%.