Is Zoetis Stock Underperforming the S&P 500?

Zoetis Inc. (ZTS) is the world’s leading animal health company, developing, manufacturing, and commercializing vaccines, medicines, diagnostics, biopharmaceuticals, and digital solutions for companion animals and livestock. The Parsippany, New Jersey-based company’s products help veterinarians, livestock producers, and pet owners predict, prevent, detect, and treat diseases. It has a market capitalization of $31.9 billion.

Companies worth $10 billion to $200 billion are generally described as “large-cap stocks,” and Zoetis definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance within the Specialty and Generic Drug Manufacturers industry. Zoetis is the largest animal health company by revenue, supported by strong brand loyalty and a diverse product portfolio. Its global presence across 100+ countries, extensive patent portfolio, and strong R&D capabilities support innovation, product development, and long-term growth.

Despite its notable strengths, ZTS is currently 50.9% below its 52-week high of $155.15, reached on September 5, 2025. The stock has also declined marginally over the past three months, trailing the S&P 500 ($SPX), which has risen marginally during the same period.

Shares of ZTS have plunged 39.5% year-to-date and 50.2% over the past 52 weeks, significantly underperforming the S&P 500’s 12% YTD gain and 19.5% return over the past year.

While ZTS has been trading below its 200-day moving average for the past year, it recently climbed above the 50-day moving average in mid-August. 

Zoetis has lagged the broader market as its 2.7% annual revenue growth over the past two years has trailed healthcare peers, while projected sales declines point to a challenging demand environment. Stagnant returns on capital also suggest limited improvement in the company’s business quality. 

However, on August 6, Zoetis shares moved up 3.9% after reporting its Q2 results. Its adjusted EPS of $1.87 surpassed Wall Street expectations of $1.86, while the company’s revenue of $2.50 billion missed Wall Street forecasts of $2.51 billion.

Within the competitive Specialty and Generic Drug Manufacturers industry, United Therapeutics Corporation (UTHR) has shown resilience and considerably outperformed ZTS, gaining marginally year-to-date and 21.5% over the past 52 weeks.

Wall Street analysts are cautiously bullish on ZTS’s prospects. The stock has a consensus “Moderate Buy” rating from 18 analysts. The mean price target of $97.69 implies 28.3% upside from current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.