Calling BS that Zoetis is not $240-$400 share price.
u/Tedious-Butcher ·
Reddit — r/ValueInvesting
· August 25, 2026 at 10:37
· ⬆ 17 pts
· 💬 60 comments
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AI Summary
Summary
Author argues Zoetis (ZTS) at ~$77 is unfairly priced at 2018 levels despite sales growing from $5.8B (2018) to ~$9.5B (2025) with 25%+ profit margins.
Thesis is simple momentum-plus-quality: rising revenue + high margins should push the stock higher, and pet owners will keep paying premium prices for trusted animal health products.
This is more opinion/speculation than rigorous DD — it ignores valuation, debt, patent expirations, and competitive dynamics.
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Zoetis share price is $77 now. That is the share price in year 2018. Which makes zero sense.
Sales in 2018 was $5.825b.
Sales in 2025 is $9.5b.
Sales in 2026 is still projected to be above $9b (Not below $6b)
The sales and EPS are constantly growing on a yearly basis.
Profit margin is above 25%.
I am a simple man. I see sales gets higher on yoy with high profit margin, the stock should be going up. But the stock isnt. Which is very odd to me.
Yes, medication from zoetis is more expensive compared to other vet brands. However, many pet lovers will opt for this just to avoid future complication if they buy cheaper medication for their pets.
Other than pets, profit margin also derives from livestocks. Those farm animals are also treated. Chickens, cows, goats, ducks and etc.
So what am i missing that is making this stock not attractive to investors to buy?
Zoetis has consistently grown sales year-over-year and maintains high profitability, which historically supports higher stock prices. If the market is overly focused on temporary headwinds (patent cliffs, debt), the stock may be mispriced relative to its stable cash generation. Author sees a long-term value opportunity, but the trade relies on the market eventually re-rating the stock once fears fade. Apoquel patent expiry (2025), Simparica expiry (2027), high debt load, weak consumer willingness to pay premium pet med prices, and lack of blockbuster pipeline replacements.
This Reddit post, published August 25, 2026,
features u/Tedious-Butcher
discussing ZTS.
1 trade idea extracted by AI with direction and confidence scoring.