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Zoetis

ZTS Healthcare Unknown Updated July 29, 2026
$77.94
52W $71.47 – $160.48
55/100
12.8
0.75
AI Committee Verdict
Watch
Conviction: Contested · 43% agreement · 7 analysts
+7.0%
-4.8%
1.45:1
Contested

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)
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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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Explore ZTS Further

📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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