What changed
$ZTS — BUY 📊
Zoetis Inc.
🎯 Q1 FY26 | Rev $2B | EPS $1.53 vs $1.62 🔴
💡 Consensus extrapolates the quarterly miss into a permanent growth slowdown, pricing the stock at 8x forward earnings. Our variant view is that the miss was largely temporary (e.g., distributor destocking, FX), and the robust full‑year outlook points to sustained mid‑single‑digit growth, supporting a re‑rating to 12‑13x.
📉 Reward/Risk: 4.7:1
🏢 Business Quality: 9/10 - Dominant global animal health platform with diversified species/therapeutic exposure, recession‑resistant demand, and industry‑leading margins (operating margin >35%)
📊 Valuation: cheap — using forward P/E (8.0x on FY26 guidance mid‑point $9.82), EV/EBITDA (~10x vs 14x peers), and FCF yield (~9% unlevered); all are near decade...
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/ZTS0621
Also in play: $CAT $DE $CMI $PCAR $OSK $CMC