Should You Consider Adding Zoetis (ZTS) to Your Portfolio?

Core Insights - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] - The fund initiated four new positions in Q3, including Zoetis Inc., indicating a belief in the long-term growth potential of certain companies despite market trends [3] Company Overview: Zoetis Inc. (NYSE: ZTS) - Zoetis Inc. specializes in animal health medications, vaccines, and diagnostic products, with a market capitalization of $63.792 billion as of October 29, 2025 [2] - The stock experienced a one-month return of -1.74% and a 52-week decline of 19.49% [2] - In Q2 2025, Zoetis reported $2.5 billion in revenue, reflecting a 4% growth on a reported basis and 8% on an organic operational basis [4] Investment Sentiment - Despite the overall market rally, the fund believes that Zoetis's stock price does not reflect its long-term growth outlook [3] - Zoetis is not among the top 30 most popular stocks among hedge funds, with 75 hedge fund portfolios holding its shares at the end of Q2 2025, a slight increase from 74 in the previous quarter [4] - The fund suggests that while Zoetis has investment potential, certain AI stocks may offer greater upside with less downside risk [4]