ZTS · NYSE · STOCK
Zoetis (ZTS) Stock Analysis
$74.84
52W $68.77 – $172.23
53/100
$31.35B
12.3
0.74
Is ZTS Bullish or Bearish?
Mixed.
Innellis AI committee rates Zoetis (ZTS) Watch with a composite score of 53/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +7.43 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -12.57 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. News Analyst sees a compelling case — news sentiment is positive (+0.33 across 18 articles, 14d). Risk Analyst remains cautious — high leverage (debt-to-equity 2.72) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 11.6 is inexpensive for the broad market — Value
- ROE of 69.2% shows genuine earnings power backing the valuation — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement — Technical
- News sentiment is positive (+0.33 across 18 articles, 14d) — News
Bear Case
- Price-to-book of 16.6x prices in significant intangible value — Value
- Debt-to-equity of 2.72 adds balance-sheet risk to the value case — Value
- 2 consecutive earnings misses -- execution concerns — Growth
- Price structure making lower highs and lower lows — Technical
- RSI at 73 is in overbought territory — Technical
- Trend and market structure agree -- coherent bearish picture — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
53/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 83%
of 192 Healthcare peers
Value Analyst
neutral
55
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ P/E of 11.6 is inexpensive for the broad market
− Price-to-book of 16.6x prices in significant intangible value
Growth Analyst
neutral
48
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− 2 consecutive earnings misses -- execution concerns
Technical Analyst
neutral
49
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst
bearish
30
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.72) amplifies downside in a stress scenario
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
68
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.33 across 18 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 53.8 to 52.6.
- New bearish signals: 2 appeared.
- Bullish support removed: 2 signal(s) disappeared.
- New bullish signals: 2 appeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
- Technical Analyst: score 56->49 (-8); +2 bearish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
73.4
Overbought
MACD Histogram
0.504
Bullish Momentum
Trend Direction
Downtrend
Weekly: Downtrend
Market Structure
Lh Ll
Support
$73.77
Resistance
$79.83
Bollinger %B
1.02
Above Upper Band
Price vs Moving Averages
EMA 9
$72.10
Above
EMA 21
$72.22
Above
EMA 50
$74.05
Above
EMA 200
$93.46
Below
Fundamental Analysis
Valuation
37
Growth
63
Profitability
100
Financial Health
50
Cash Flow
70
Valuation
P/E Ratio
12.3×
P/B Ratio
9.92×
PEG Ratio
2.75
Dividend Yield
2.80%
52W High
$172.23
52W Low
$68.77
Quality & Growth
ROE
8024.6%
ROA
1728.2%
Gross Margin
7087.3%
Operating Margin
3699.7%
Revenue Growth YoY
—
Debt / Equity
2.93
AI Fundamental Assessment
P/E ratio of 12.3 (inexpensive relative to a 15-40x range); Price-to-book of 9.9x; PEG ratio of 2.8 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 80.2%; Return on assets of 17.3%; Net margin of 27.5%; Gross margin of 70.9%; Current ratio of 3.08 (healthy short-term liquidity); Debt-to-equity of 2.93; Free cash flow per share is positive (5.67); Most recent quarter missed estimates by 0.2%; 2 consecutive earnings misses; EPS growth accelerating (+3.4% -> +22.2% QoQ); Average YoY EPS growth of 6.2%; Analyst estimates rising over recent quarters
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