Zoetis down -50% over the past year

ZTS trades at 13x P/E while delivering 9% EPS growth, and management increased debt by 50% to fund buybacks. The combination of low valuation, positive EPS growth, and aggressive management buybacks (signaling intrinsic value > current price) creates a contrarian value opportunity. Buy ZTS as a value play on temporary pet sector headwinds, with management providing a strong signal through leveraged buybacks. Continued contraction in the pet segment; macro slowdown in animal health spending; rising debt service costs if rates stay high.