What changed
$ZTS — HOLD 📊
Zoetis Inc.
🎯 Q2 2026 | Rev $2B | EPS $1.53 vs $1.62 🔴
💡 Market prices in further earnings deterioration after the Q1 miss, but we estimate the miss was largely transitory (inventory adjustments, FX). Once these clear, EPS can stabilize near $5.90, supporting P/E re-expansion from crisis levels to 14x.
📉 Reward/Risk: 3.0:1
🏢 Business Quality: 9/10 - Wide moat from veterinarian relationships, pipeline, and essential animal health products; recession-resistant demand.
📊 Valuation: cheap on historical and peer basis (12.9x vs 5-year median 13.1x and peer group 16x), but fair when considering near-term estimate risk.
🔮 Catalyst: Q2 2026 earnings pre-announcement or positive news flow from industry trade shows
💰 Entry: $73, stop $69, target $85
📊 Our read: HOLD. Full analysis →
https://stockduty.xyz/s/ZTS0622
Also in play: $CAT $DE $CMI $PCAR $OSK $CMC