What changed
$ZTS — ADD 📊
Zoetis Inc.
🎯 Q2 2026 | Rev $2B | EPS $1.53 vs $1.62 🔴
💡 Consensus expects continued earnings declines and permanent margin compression from Apoquel generics, but we see a more resilient demand and new product growth offsetting declines, leading to earnings inflecting higher in H2 2026.
📉 Reward/risk: 3.3:1
🏢 Business Quality: 8/10 - Wide moat, strong R&D, global scale, but facing patent cliff headwind.
📊 Valuation: cheap - P/E ~12x vs historical 25-40x; EV/EBITDA ~9x vs peers 15-20x; FCF yield >8%, suggesting significant undervaluation if earnings base holds.
🔮 Catalyst: Q2 2026 earnings release
💰 Entry: $76.84, stop $70, target $100
⚖️ Add ZTS on deep value with asymmetric upside as market overestimates Apoquel LOE impact; watch for Q2 catalyst.
📊 Our read: ADD. Full analysis →
https://stockduty.xyz/s/ZTS0624
Also in play: $CAT $DE $CMI $PCAR $OSK $CMC