Zoetis - a Difficult Pill to Swallow

TradingView2026/05/07 16:45

By:TradingView

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Zoetis is considered a wide moat animal health business. Originally spun off from Pfizer, this business had it's peak run during the covid madness and has since languished.

The technicals are clear, a 5 wave move up, followed by an ABC correction. The question now for any potential buyers is where the C wave lands. There is support around $95, but if that fails (which is more likely than not) we are looking at $75-80.

The chart is broken, but I believe the business is not. Whilst growth has slowed down, they still maintain the lead in a monopolistic fashion - albeit with less pricing power as competition chips away at market share.

Gross margins remain at 70.3%, ROIC is close to 20%. The debt profile is not good but their leveraged ratio is 1.7x, which is safe and disciplined. FCF is where this shines, 90% of net income is converted into FCF.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Zoetis - a Difficult Pill to Swallow

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