Dec 2, 2025 7:30 AM Eastern Standard Time Zoetis Highlights R&D Leadership and Long-Term Growth Opportunity at Innovation Webcast Share Underscores Proven Innovation Model, Robust and Diversified Pipeline with 12 Potential Blockbuster Candidates, and Unmatched Scale and Capabilities Animal Health Leader Positioned to Deliver Sustained Revenue Growth, Profitability and Shareholder Value PARSIPPANY, N.J.--(BUSINESS WIRE)--Zoetis Inc.(NYSE: ZTS), the world's leading animal health company, will host an Innovati ...

Group 1: Pinterest - Pinterest's stock price has significantly declined due to third-quarter earnings that fell short of market expectations, despite a 17% year-over-year revenue growth to approximately $1 billion and earnings per share of $0.13, up from $0.04 a year ago [3][4] - The company is facing tariff-related disruptions affecting ad demand from retail giants, but it has shown positive signs such as a 5% year-over-year increase in average revenue per user (ARPU) to $1.78 and a 30% year-over-year increase in free cash flow to $318.4 million [5][6] - Pinterest's user base continues to grow, reaching 600 million monthly active users (MAUs), a 12% year-over-year increase, and the company is enhancing its platform through AI initiatives, which could improve ad revenue [5][6][8] Group 2: Zoetis - Zoetis has faced challenges this year due to declining sales of its new products Librela and Solensia, which treat osteoarthritis pain in pets, but its key product Apoquel continues to perform well and contributes to dermatology revenue growth [9][10] - The company estimates that over 20 million dogs remain untreated or under-treated, indicating significant market potential for its dermatology franchise, which has only reached 12 million dogs since entering the market [11] - Zoetis has a strong history of innovation with 17 products generating over $100 million in annual revenue and over 300 product lines, and it has increased its dividend payouts by 426.3% over the past decade, making it attractive for long-term investors [14][15]

Core Viewpoint - Zoetis Inc. has received marketing authorization from the European Commission for Lenivia® (izenivetmab), a new antibody therapy aimed at reducing pain associated with osteoarthritis in dogs [1] Company Summary - Lenivia is designed to alleviate osteoarthritis pain in dogs for a duration of three months with a single injection [1] - The therapy utilizes novel binding properties to nerve growth factor (NGF), which is recognized as a significant mediator of pain and inflammation [1] - The development of Lenivia is based on over a decade of research [1]

Core Insights - Zoetis Inc. is a leading company in animal health with a market capitalization of approximately $53.8 billion, involved in the discovery, development, manufacturing, and commercialization of various animal health products [1]. Company Overview - The company operates direct marketing in around 45 countries across multiple continents, solidifying its position as a large-cap company valued at over $10 billion [2]. Stock Performance - Zoetis' stock has faced significant challenges, declining 32.4% from its peak of $181.85 in December 2024, with a 21.6% drop in the last three months, contrasting with a 2.6% increase in the Dow Jones Industrial Average during the same period [3][4]. - Over the past 52 weeks, the stock has decreased by 30.6%, while the Dow has risen by 3.8%. Year-to-date in 2025, the stock has plummeted 24.6% compared to a 9.2% rise in the Dow [4]. Recent Financial Performance - In Q3 fiscal 2025, Zoetis reported revenue of $2.4 billion, which met analyst expectations, and adjusted EPS increased by 7.6% year-over-year to $1.70, exceeding consensus estimates [5]. - However, the company revised its full-year sales outlook down to $9.4 billion to $9.475 billion, reflecting a decline in demand for certain medicines and vaccines, particularly for pigs and chickens [6]. Market Sentiment - Following the earnings report, Zoetis' shares fell by 13.8% due to the weak outlook overshadowing solid results [5]. - On November 21, the stock rebounded by 5.3% after KeyBanc initiated coverage with a "Sector Weight" rating and set a price target of $175.04, indicating confidence in the company's potential to outperform as market conditions stabilize [7].

Core Insights - Zoetis Inc. is currently viewed as a highly profitable large-cap stock, but recent adjustments to revenue forecasts have raised concerns about future growth potential [1][3] - Stifel analyst Jonathan Block has lowered the price target for Zoetis from $140 to $130 while maintaining a Hold rating, indicating a cautious outlook on the stock [1][3] Financial Performance - In Q3 2025, Zoetis reported total revenue of $2.4 billion, reflecting a 4% organic operational growth [2] - Adjusted net income for the quarter reached $754 million, which is a 9% increase on an organic operational basis, leading to a 12% growth in adjusted diluted EPS [2] - The company has revised its full-year revenue guidance to a range of $9.4 to $9.475 billion, indicating an expected organic operational growth of 5.5% to 6.5% [3] Future Outlook - The adjusted net income guidance for the full year is set between $2.8 to $2.84 billion, corresponding to a 5.5% to 7% organic operational growth [3] - Adjusted diluted EPS guidance is projected to be between $6.30 to $6.40 [3] - Despite the potential of Zoetis as an investment, there are suggestions that certain AI stocks may offer better upside potential with less downside risk [4]

Core Insights - The animal health industry is facing challenges that require companies to innovate and adapt strategically [1] - Zoetis Inc. (NYSE:ZTS) is under scrutiny from KeyBanc Capital Markets regarding its product lineup and market positioning [2] - KeyBanc initiated coverage on Zoetis, highlighting ongoing challenges from its osteoarthritis (OA) pain monoclonal antibody (mAb) products and increased competition [3] Company Performance - Zoetis is experiencing headwinds from its OA pain mAb products, which have faced criticism on social media for potential side effects [4] - Despite these challenges, Zoetis is recognized for its history of innovation and is considered a high-quality company with revenue growth rates above the industry average and historically high profit margins [5] - The company reported third-quarter sales of $2.4 billion, reflecting a 1% year-over-year increase, slightly below the consensus estimate of $2.41 billion [6] Market Positioning - KeyBanc has assigned a Sector Weight rating to Zoetis until there is significant improvement in its OA pain mAb products or new high-revenue product launches [6] - Zoetis shares are currently trading at approximately 17.5x forward P/E, which is a discount compared to its two-year average of around 27x [6] - Growth in parasiticides, diagnostics, and dermatology portfolios was offset by a decline in mAb products for OA pain [7]

Core Insights - Zoetis Inc. is a leading global animal health company that develops, manufactures, and markets veterinary vaccines and medicines, serving veterinarians, livestock producers, and pet owners [1] - KeyBanc initiated coverage of Zoetis with a "Sector Weight" rating, indicating expectations for the company's performance to align with the broader sector [2][5] - The stock price of Zoetis has fluctuated significantly, with a year high of $181.85 and a low of $115.25, reflecting its substantial market presence with a market capitalization of approximately $51.07 billion [4][5] Company Participation - Zoetis is scheduled to participate in the Piper Sandler 37th Annual Healthcare Conference on December 4, 2025, with CEO Kristin Peck and CFO Wetteny Joseph representing the company [3][5] - The conference will provide insights into the company's strategies and performance, with a live audio webcast available for investors [3] Stock Performance - The stock price of Zoetis was $115.89 when KeyBanc initiated coverage, reflecting a decrease of 1.02% or $1.19 on that day [2] - During the trading day, the stock price fluctuated between $115.80 and $118.43, with a trading volume of 3,260,584 shares [4]

Core Viewpoint - Zoetis Inc. has experienced a significant decline in stock price over the past month and year, raising questions about its valuation despite current performance [1]. Group 1: Stock Performance - The current stock price of Zoetis Inc. is $117.53, reflecting a 0.38% increase in the current market session [1]. - Over the past month, the stock has decreased by 20.42%, and over the past year, it has fallen by 34.17% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for assessing a company's market performance, comparing the current share price to its earnings per share (EPS) [5]. - Zoetis has a lower P/E ratio compared to the Pharmaceuticals industry average of 54.52, suggesting it may be undervalued despite potential concerns about future performance [6]. - A lower P/E ratio can indicate undervaluation but may also imply that shareholders do not expect future growth [9][10]. Group 3: Investment Considerations - The P/E ratio should not be used in isolation; it is essential to consider other financial metrics and qualitative factors for informed investment decisions [10].

Core Insights - Zoetis (ZTS) is facing stock pressure due to softer clinic traffic and uneven companion-animal demand, but its fundamentals remain strong, suggesting a potential discount for investors [2][4][10] - The company reported a 10% increase in organic operational revenue from livestock in Q3 2025, driven by vaccine demand, and a 7% operational expansion in the Simparica franchise [3][4] - Despite a narrowed full-year revenue guidance, new product approvals and initiatives are in place to stabilize and drive future growth [4][10] Financial Performance - Overall organic revenue growth was 4%, with a notable 9% organic increase in adjusted net income, indicating effective cost management [3][4] - Operating cash flow margin is nearly 31.0%, and operating margin stands at 37.6% for the last twelve months [10] - The stock is currently available at a price-to-sales (P/S) multiple of 5.7, representing a 35% discount compared to one year ago [10] Market Position - Zoetis is recognized as the world's largest animal-health company, with a strong history of high margins and steady cash generation [2] - The company has a long-standing leadership position in the animal health sector, which is being reassessed by investors due to current valuation levels [2][10] - The Trefis High Quality Portfolio, which includes Zoetis, has historically outperformed benchmark indices, indicating strong market positioning [9]

Core Viewpoint - Catalyst Pharmaceutical (CPRX) is currently more attractive to value investors compared to Zoetis (ZTS) based on various valuation metrics and earnings outlook improvements [3][7]. Valuation Metrics - CPRX has a forward P/E ratio of 9.50, significantly lower than ZTS's forward P/E of 19.12 [5]. - The PEG ratio for CPRX is 0.80, indicating a more favorable valuation relative to its expected earnings growth, while ZTS has a PEG ratio of 2.11 [5]. - CPRX's P/B ratio stands at 3.03, compared to ZTS's P/B of 9.95, further highlighting the relative undervaluation of CPRX [6]. Earnings Outlook - CPRX has experienced stronger estimate revision activity, suggesting a more positive earnings outlook compared to ZTS [3][7]. - The Zacks Rank for CPRX is 2 (Buy), indicating a favorable investment position, while ZTS has a Zacks Rank of 4 (Sell) [3].