Is Zoetis Stock Underperforming the Dow?

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].