How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Zoetis (ZTS) ten years ago? It may not have been easy to hold on to ZTS for all that time, but if you did, how much would your investment be worth today?
Zoetis' Business In-Depth
With that in mind, let's take a look at Zoetis' main business drivers.
Parsippany, NJ-based Zoetis Inc. came into existence following Pfizer’s decision to spin off its animal health business. The entity started trading on the NYSE on Feb. 1, 2013, under the name Zoetis. The company is a leader in the animal health space, which focuses on livestock and companion animals in seven major product categories: parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical and animal health diagnostics. Zoetis has a diversified business, which caters to eight core species — cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).
The outstanding growth rate in the companion animal medicines, vaccines and diagnostics sector is being driven by economic development, related increases in disposable income and a rise in pet ownership and spending on pet care.
Zoetis has been working on strengthening its product portfolio through acquisitions and deals. In 2023, the company acquired two privately held research and development stage animal health biopharmaceutical companies, PetMedix Ltd. and adivo GmbH. PetMedix develops antibody-based therapeutics for companion animals, which is expected to strengthen Zoetis’ companion animal products portfolio.
Zoetis has consolidated its four-region structure into a two-region structure, namely the United States and International. Total revenues grew 8% year over year to $9.26 billion in 2024. The United States contributed 55% of total revenues in 2024, while international revenues contributed the rest.
In 2024, Zoetis’ two top-selling products and product lines were Simparica/Simparica Trio and Apoquel/Apoquel Chewable, contributing approximately 15% and 11%, respectively, of its revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Zoetis a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in May 2015 would be worth $3,390.62, or a 239.06% gain, as of May 27, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 175.77% and gold's return of 171.97% over the same time frame.
Analysts are anticipating more upside for ZTS.
Zoetis’ first-quarter earnings and revenues beat estimates, driven by increasing companion animal product sales. It has an innovative pet care parasiticides portfolio, including Simparica Trio and key dermatology products, which have been maintaining momentum. The strong uptake of Librela and Solensia in the EU, its new monoclonal antibody therapies for osteoarthritis pain in dogs and cats, has boosted sales. The recent Simparica Trio label expansion has been fueling growth. It announced a 16% hike in dividend payments from the quarterly rate paid in 2024, starting first-quarter 2025. However, Zoetis had earlier faced supply challenges, which affected demand. Despite constraints being eased, a similar situation will restrain growth. Zoetis also faces stiff competition from other prominent players in the market. Shares have underperformed in the industry in the past year.
Shares have gained 5.87% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Zoetis Inc. (ZTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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