Zoetis Inc. (ZTS), headquartered in Parsippany, New Jersey, with a market cap of $79.1 billion, is a global leader in animal health innovation. Known for its expertise in developing and delivering medicines, vaccines, and diagnostic solutions, Zoetis is committed to advancing the care of animals, improving veterinary outcomes, and addressing critical health needs for livestock and companion animals worldwide.

Companies valued at over $10 billion are typically classified as “large-cap stocks,” a category that Zoetis exemplifies through its impressive scale, innovation, and industry leadership. Zoetis' commitment for livestock and companion animals ensures its continued prominence in the growing animal health sector.

Zoetis shares are currently trading 13.5% below their 52-week high of $201.92, reached on Dec. 14, 2023. Over the past three months, the stock has declined 6.3%, slightly underperforming the Health Care Select Sector SPDR Fund (XLV), which saw a 6.1% decline during the same period.

Over the longer term, ZTS stock has fallen 2.7% over the past 52 weeks and is down 11.5% on a YTD basis, underperforming the XLV, which has gained 6.4% YTD and delivered a 10% return over the past year.

To confirm the recent bearish trend, ZTS has traded below its 50-day moving average since late October and below its 200-day moving average since late November.

Zoetis delivered better-than-expected Q3 results on Nov. 4, yet its stock fell 3.7%. The company reported revenue of $2.39 billion, an 11% year-over-year increase, exceeding consensus estimates. Adjusted EPS came in at $1.58, beating Wall Street expectations of $1.46.

Zoetis raised its full-year 2024 revenue guidance to a range of $9.2 billion to $9.3 billion, reflecting operational growth of 10% to 11%. The company also updated its adjusted diluted EPS forecast to $5.86 to $5.92, underlining confidence in its strong operational performance and growth trajectory.

ZTS has outperformed its competitor, Elanco Animal Health Incorporated (ELAN), which has seen a 5.8% decline over the past 52 weeks.

Despite its recent weak price performance, analysts remain optimistic about Zoetis' prospects. The stock holds a consensus "Strong Buy" rating from 16 covering analysts, with a mean price target of $220.14, indicating a potential upside of 26% from its current level.