6. Zoetis Inc. (NYSE:ZTS)
Zoetis Inc. (NYSE:ZTS) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. Cramer highlighted the stock’s declines, as he said:
Zoetis, okay, here’s a classic 1999er. The uber-consistent animal health company is experiencing something that’s pretty hard to believe: an endless series of declines after one weak quarter. That’s very much, I’d say, March of 2000, end of the month. Punished, punished, and punished some more with the stock down 7.4% today, not to mention down 39% for the year. This is a quality company.
Zoetis Inc. (NYSE:ZTS) develops and sells medicines, vaccines, and diagnostic tools for both pets and livestock. Mairs & Power stated the following regarding Zoetis Inc. (NYSE:ZTS) in its fourth quarter 2025 investor letter:
Still, we believe the investments being made in AI today are laying a foundation that could drive outsized economic returns for companies able to harness the technology to accelerate innovation, increase sales, and improve profitability. During the fourth quarter, we added two such companies to the portfolio: Zoetis Inc. (NYSE:ZTS) and Intuitive Surgical.
Zoetis (ZTS) develops, manufactures, and commercializes pharmaceuticals serving both the companion animal and livestock markets. With a portfolio of more than 300 products, the company benefits from scale, enabling sustained investment in R&D, sales, and manufacturing capabilities. Zoetis is at the forefront of integrating generative AI into its R&D processes, with the goal of accelerating drug discovery and shortening development timelines. The animal health market has limited exposure to concentrated buyers, third-party payers, and generic competition, resulting in attractive industry economics. Over the past several decades, we have also observed a steady trend toward the “humanization” of pets, and younger generations appear poised to continue this shift. Zoetis’s shares have declined sharply over the past year due to heightened competitive pressures and a high-profile product launch setback, allowing us to start a position at what we believe was an attractive valuation. The company continues to invest aggressively in R&D to address critical unmet needs, including cardiovascular, oncology, and renal treatments, reinforcing our confidence in its long-term growth potential.
While we acknowledge the potential of ZTS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZTS and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see Jim Cramer’s Take on 5 Stocks: Home Depot, Procter & Gamble, and Danaher.
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