Is ZTS a good stock to buy now? We came across a bullish thesis on Zoetis Inc. on Rebound Capital’s Substack. In this article, we will summarize the bulls’ thesis on ZTS. Zoetis Inc.’s share was trading at $131.10 as of February 27th. ZTS’s trailing and forward P/E were 21.78 and 19.08 respectively according to Yahoo Finance.
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Zoetis Inc. (ZTS) is the clear leader in the global animal health market, benefiting from the convergence of essential livestock care and the ongoing humanization of pets. Since its spinoff from Pfizer in 2013, Zoetis has built a high-margin, innovation-driven portfolio, with its companion animal division now focused on chronic care blockbuster drugs for cats and dogs, while its livestock division continues to provide mission-critical support for sustainable animal protein. The company’s 2025 revenue is projected at approximately $9.5 billion, reflecting both steady demand in livestock and strong growth potential in the companion animal segment.
Recently, Zoetis’s stock fell 13% following a reduction in full-year guidance, primarily driven by concerns over its osteoarthritis drug Librela. Social media reports and class action lawsuits alleging adverse neurological effects have created temporary headwinds, impacting sentiment and sales.
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Management has acknowledged the negative perception and committed to presenting science-based evidence supporting the safety and efficacy of its therapies. While these issues warrant monitoring, Zoetis’s deep pipeline and long-standing track record of innovation position it to continue addressing unmet needs in pet health.
From a bullish perspective, Zoetis represents a compelling investment opportunity. The companion animal segment, despite near-term concerns, benefits from secular tailwinds as pet owners increasingly treat animals as family, driving higher per-animal spend. The livestock business offers stable, recurring cash flow, de-risking the overall model.
If market sentiment normalizes around Librela and pipeline launches proceed successfully, Zoetis could see multiple expansion and revenue growth acceleration, making the current pullback an attractive entry point for long-term investors seeking exposure to a leader with durable competitive advantages and a resilient, growth-oriented business model.
Previously, we covered a bullish thesis on Zoetis Inc. (NYSE:ZTS) by Best Anchor Stocks in December 2024, which highlighted accelerating revenue growth, market leadership in animal health, and the expansion of its Librela and Solensia franchises. ZTS’s stock has depreciated by approximately 20.40% since our coverage. Rebound Capital shares a similar view but emphasizes near-term headwinds from Librela-related sentiment and legal concerns.
Zoetis Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held ZTS at the end of the fourth quarter which was 72 in the previous quarter. While we acknowledge the risk and potential of ZTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZTS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
