ZTS Should I Buy
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Zoetis Inc (ZTS) is not a strong buy at the moment for a beginner investor with a long-term strategy. Despite positive financial performance and hedge fund interest, the lack of strong innovation catalysts, neutral analyst ratings, and a mixed technical and options sentiment suggest holding off on immediate investment.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 62.9, and moving averages are converging, showing no clear trend. The stock is trading near a resistance level (R1: 131.215), which may limit upside potential in the short term.
Zoetis reported strong Q4 2025 financials, including 6% organic revenue growth and 7% adjusted net income growth. Hedge funds have significantly increased their positions in the stock, with a 228.26% increase in buying activity over the last quarter.
Analysts have downgraded the stock to Neutral, citing an 'innovation air pocket' that could last 1-2 years. The company projects only 5% year-over-year growth for 2026, and options sentiment is bearish. Stock trend analysis suggests a potential decline in the short term.
Zoetis reported Q4 2025 revenue of $2.387 billion, up 3.02% YoY, and net income of $603 million, up 3.79% YoY. EPS increased by 6.98% YoY to $1.38, and gross margin improved to 68.87%. These results exceeded expectations, reflecting strong profitability.
Recent analyst ratings are neutral. Price targets have been adjusted downward, with the latest targets ranging from $135 to $140. Analysts express concerns about the lack of near-term innovation and the current consumer spending environment impacting the company's growth potential.
