NASDAQ · STOCK
Zoetis
$77.94
52W $71.47 – $160.48
55/100
—
12.8
0.75
Is ZTS Bullish or Bearish?
Mixed.
Innellis AI committee rates Zoetis (ZTS) Watch with a composite score of 55/100
, based on 7 analysts with 43% agreement.
Last updated July 29, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +5.01 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -14.99 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). Risk Analyst remains cautious — high leverage (debt-to-equity 2.72) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 12.3 is inexpensive for the broad market — Value
- ROE of 62.4% shows genuine earnings power backing the valuation — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement — Technical
- Market regime is bullish (Bull market -- normal position sizing) — Macro
Bear Case
- Price-to-book of 16.6x prices in significant intangible value — Value
- Debt-to-equity of 2.72 adds balance-sheet risk to the value case — Value
- Price structure making lower highs and lower lows — Technical
- High leverage (debt-to-equity 2.72) amplifies downside in a stress scenario — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of July 29, 2026
Overall Committee Score
55/100
Agreement
43%
Analysts
7
Conviction
Contested
Sector Rank
Top 59%
of 93 Healthcare peers
Value Analyst
neutral
55
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ P/E of 12.3 is inexpensive for the broad market
− Price-to-book of 16.6x prices in significant intangible value
Growth Analyst
bullish
62
/ 100 · Moderate confidence
Strong, accelerating growth with consistent execution
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
Technical Analyst
neutral
56
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst
bearish
30
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.72) amplifies downside in a stress scenario
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.27 across 23 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3206.65)
Investment Thesis Evolution
Committee score moved marginally from 55.0 to 55.0.
Comparing 2026-07-28 to 2026-07-29 (1 day apart).
Technical Analysis
RSI (14)
64.3
Neutral
MACD Histogram
0.556
Bullish Momentum
Trend Direction
Downtrend
Weekly: Downtrend
Market Structure
Lh Ll
Support
$73.77
Resistance
$82.94
Bollinger %B
0.91
Inside Bands
Price vs Moving Averages
EMA 9
$75.94
Above
EMA 21
$76.09
Above
EMA 50
$80.98
Below
EMA 200
$106.85
Below
Fundamental Analysis
Valuation
57
Growth
62
Profitability
2
Financial Health
50
Cash Flow
37
Valuation
P/E Ratio
12.8×
P/B Ratio
10.12×
PEG Ratio
1.56
Dividend Yield
0.03%
52W High
$160.48
52W Low
$71.47
Quality & Growth
ROE
80.2%
ROA
17.3%
Gross Margin
70.8%
Operating Margin
37.6%
Revenue Growth YoY
—
Debt / Equity
2.86
AI Fundamental Assessment
P/E ratio of 12.8 (inexpensive relative to a 15-40x range); Price-to-book of 10.1x; PEG ratio of 1.6 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.8%; Return on assets of 0.2%; Net margin of 0.3%; Gross margin of 0.7%; Current ratio of 3.15 (healthy short-term liquidity); Debt-to-equity of 2.86; Free cash flow margin of 0.8% (thin cash generation); Free cash flow per share is positive (5.06); Most recent quarter missed estimates by 6.2%; EPS growth accelerating (-12.9% -> +3.4% QoQ); Analyst estimates flat over recent quarters
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