Zoetis Stock Rises 13% in a Month: Time to Add to Your Portfolio?

Shares of Zoetis ZTS have risen 12.5% in a month. The company is a major player in the animal health market. The company operates in seven major product categories, namely, parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical and animal health diagnostics. 

Zoetis’ diversified product portfolio caters to eight core species – cattle, swine, poultry, fish and sheep (collectively, livestock) and dogs, cats and horses (collectively, companion animals).

Let’s delve deeper to discuss why adding this Zacks Rank #2 (Buy) stock to your portfolio may prove beneficial in 2025.

ZTS’ New Products Deliver Strong Performance

Zoetis is experiencing strong growth driven by its robust companion animal portfolio, supported by internal innovation. Key dermatology products like Apoquel and Cytopoint, along with newer offerings, such as Simparica, Stronghold Plus, and ProHeart 12 (a once-yearly heartworm preventive), are fueling sales. The FDA approvals for Apoquel Chewable and an expanded indication for Simparica Trio (now covering flea and tapeworm prevention) are expected to further strengthen demand.

Zoetis is also expanding internationally, with Rimadyl approved in China and strong uptake of Librela and Solensia, monoclonal antibody therapies for osteoarthritis pain in dogs and cats. Continued product innovation and rising global medicalization rates are expected to drive sustained growth in upcoming quarters.

ZTS Drives Growth Through Strategic Acquisitions

Zoetis has also been expanding its business through acquisitions. Such expansion initiatives bode well for the company, strengthening its position in the animal healthcare market.

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. This acquisition is expected to strengthen Zoetis’ companion animal products portfolio.

In early 2024, Zoetis enhanced its Vetscan Imagyst diagnostics platform by adding AI Urine Sediment analysis, enabling quick and accurate in-clinic urine testing for faster treatment decisions. Vetscan Imagyst is the first AI-based platform offering five diagnostic applications in one system, delivering consistent and individualized results. Zoetis also introduced the AI Masses analysis technology to the platform, allowing rapid screening of lymph node and skin/subcutaneous lesions, further strengthening its high-value, in-clinic diagnostic capabilities.

ZTS Boosts Shareholder Value With Increased Dividends

Zoetis has been consistently increasing dividends for shareholders, which is another lucrative reason to add the stock to your portfolio. ZTS’ board declared a dividend of 50 cents per share for the third quarter of 2025, representing an increase of 16% from the quarterly dividend rate paid in 2024. 

ZTS’ Price Performance, Premium Valuation & Rising Estimates

Year to date, Zoetis shares have gained 3.5% compared with the industry’s 10.4% growth. The stock has, however, outperformed the sector as well as the S&P 500, as seen in the chart below. It is currently trading above its 50-day moving average, but below the 200-day moving average.

ZTS Stock Performance

The stock is currently trading at a premium to the industry, as seen in the chart below. However, it might be prudent to add ZTS to your portfolio despite the premium valuation, as the company's strong fundamentals will generate lucrative returns in the future.

ZTS Valuation Chart

In the past 60 days, the Zacks Consensus Estimate for Zoetis’ 2025 earnings per share (EPS) has increased from $6.08 to $6.26. During the same time frame, the consensus estimate for ZTS’ 2026 EPS has increased from $6.65 to $6.79.

Consistently rising earnings estimates highlight analysts’ optimistic outlook for further growth.

ZTS Estimate Movements

Other Stocks to Consider

Some other top-ranked stocks in the biotech sector are Bayer BAYRY, Lexicon Pharmaceuticals LXRX and Amarin AMRN, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Bayer’s earnings per share have increased from $1.19 to $1.25 for 2025. During the same time, earnings per share have increased from $1.28 to $1.31 for 2026. Year to date, shares of Bayer have gained 47.7%. 

BAYRY’s earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%. 

In the past 60 days, estimates for Lexicon’s loss per share have narrowed from 37 cents to 32 cents for 2025. During the same time, loss per share estimates for 2026 have narrowed from 35 cents to 31 cents. Year to date, shares of LXRX have lost 10.5%.

LXRX’s earnings beat estimates in three of the trailing four quarters and missed the same on the remaining occasion, delivering an average surprise of 11.97%.

In the past 60 days, estimates for Amarin’s loss per share for 2025 have narrowed from $5.00 to $2.78. During the same time, loss per share estimates for 2026 have narrowed from $3.87 to $2.04. Year to date, shares of AMRN have gained 22.1%.

AMRN’s earnings beat estimates in two of the trailing four quarters, matched once and missed the same on the remaining occasion, delivering an average surprise of 29.11%.

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This article originally published on Zacks Investment Research (zacks.com).

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