Zoetis' Stock Is About as Cheap as It's Ever Been. 1 Thing to Know Before You Buy.

Core Insights - Shares in Zoetis have faced pressure following the release of its Q4 earnings report, which showed satisfactory numbers but disappointing revenue guidance for 2025 [1] - The revenue guidance for 2025 is influenced by various factors, including new market entrants and potential product approvals [2][3] Revenue Guidance Considerations - The operational organic revenue growth forecast for 2025 is projected at 6% to 8%, factoring in assumptions about new competitors entering the market [2] - The success of these new entrants remains uncertain, which could impact Zoetis' performance relative to management's expectations [2] Potential Upsides - Management's guidance does not account for products awaiting approval, with expectations for three pharmaceutical product approvals in the next 12 months, five in the next 12 to 36 months, and seven in the next 36 to 60 months [3] - The anticipated product approvals could contribute positively to revenue in 2025, with management expressing optimism about having at least one approval each year for the next several years [4] - Specifically, products targeting chronic kidney disease and oncology in dogs could open markets valued at up to $5.7 billion, representing significant growth potential for Zoetis [4]