13 Best Defensive Stocks to Invest in According to Analysts

2. Zoetis Inc. (NYSE:ZTS)

Beta: 0.88

Dividend Yield: 1.4%

Potential Upside: 36%

Number of Hedge Fund Holders: 74

Zoetis Inc. (NYSE:ZTS) is one of the best defensive stocks to invest in according to analysts. On July 10, Bank of America analyst Michael Ryskin reaffirmed a Buy rating on Zoetis with an unchanged price target of $200. His view remains constructive despite the recent FDA approval of Merck’s Bravecto Quantum, a new product that some may see as a potential competitor in the parasiticides market.

According to the analyst, Merck’s Quantum medication is unlikely to pose a major threat to Zoetis’s current market standing. Its medication Simparica Trio, which protects against a range of parasites, including heartworms, is already well-established in the U.S. and continues to drive a significant portion of Zoetis’s sales. In contrast, Quantum’s requirement for vet-administered dosing and its inconsistent duration may impact its uptake, especially in the U.S. market.

The analyst also notes that Zoetis could indirectly benefit from Quantum because its injectable heartworm preventive product ‘ProHeart’ could be used alongside Quantum as a combination therapy.

Zoetis Inc. (NYSE:ZTS) discovers, develops, manufactures, and commercializes animal health products, including medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health.