Should You Buy Zoetis Inc (ZTS) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
121.720
1 Day change
-0.17%
52 Week Range
177.400
Analysis Updated At
2026/01/26
Zoetis Inc. (ZTS) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown modest financial growth and has potential in the pet health market, the technical indicators are bearish, analyst sentiment is mixed to negative, and the stock is currently in an 'innovation air pocket' with limited near-term catalysts. It is better to hold off on investing until there is clearer evidence of recovery or stronger innovation-driven growth.
Technical Analysis
The technical indicators for ZTS are bearish. The MACD is negatively expanding, the RSI is neutral at 41.609, and the moving averages are in a bearish alignment (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 124.988, with key support at 122.429 and resistance at 127.548. The short-term trend suggests a 60% chance of a -2.58% decline in the next day and a -4.6% decline in the next week.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
11
Buy
4
Positive Catalysts
Zoetis has received approvals for Lenivia and Portela, its new osteoarthritis pain treatments for pets, which could enhance its market share and financial performance in the long term. Hedge funds have significantly increased their buying activity, with a 228.26% increase over the last quarter.
Neutral/Negative Catalysts
Analysts have downgraded the stock, citing an 'innovation air pocket' that could last 1-2 years and concerns about the current consumer spending environment. The company's Q3 results showed flat growth in its key U.S. companion-animal health segment, and competition remains a headwind. Technical indicators and short-term stock trends are bearish.
Financial Performance
In Q3 2025, Zoetis reported modest financial growth: Revenue increased by 0.50% YoY to $2.4 billion, Net Income rose by 5.72% YoY to $721 million, EPS increased by 8.67% YoY to 1.63, and Gross Margin improved by 1.43% YoY to 70.25%. While these figures indicate stability, they do not suggest significant growth momentum.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analyst sentiment is mixed to negative. Piper Sandler downgraded the stock to Neutral with a price target of $135, down from $190, citing concerns about profitability and innovation delays. Other firms, including BofA and HSBC, have also lowered their price targets. While some analysts maintain a Buy rating, the overall sentiment reflects caution due to competitive pressures and limited near-term growth catalysts.
Wall Street analysts forecast ZTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZTS is 154.2 USD with a low forecast of 130 USD and a high forecast of 200 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast ZTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZTS is 154.2 USD with a low forecast of 130 USD and a high forecast of 200 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 121.930
Low
130
Averages
154.2
High
200
Current: 121.930
Low
130
Averages
154.2
High
200
Piper Sandler
David Westenberg
Overweight -> Neutral
downgrade
$190 -> $135
AI Analysis
2026-01-22
Reason
Piper Sandler
David Westenberg
Price Target
$190 -> $135
AI Analysis
2026-01-22
downgrade
Overweight -> Neutral
Reason
Piper Sandler analyst David Westenberg downgraded Zoetis to Neutral from Overweight with a price target of $135, down from $190.
Piper Sandler
Overweight -> Neutral
downgrade
$190 -> $135
2026-01-22
Reason
Piper Sandler
Price Target
$190 -> $135
2026-01-22
downgrade
Overweight -> Neutral
Reason
Piper Sandler downgraded Zoetis to Neutral from Overweight with a price target of $135, down from $190. The firm continues to like Zoetis' portfolio over the long term, but is not comfortable with estimates over the next couple of years until it sees some of the company's innovation hitting the market. Zoetis "is in an innovation air pocket that could last one to two years," the analyst tells investors in a research note. Further, Piper does not believe the current consumer spending environment supports the price versus value the company's 2026 launches provide.
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