Zoetis (ZTS) Traded Lower Due to Reduced 2026 Outlook

16 hours ago 2

Soumya Eswaran

Tue, February 3, 2026 astatine 7:14 AM CST 3 min read

Diamond Hill Capital, an concern absorption company, released its “Large Cap Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equity markets continued their upward momentum successful Q4, with the Russell 1000 Value Index expanding 3.8%. The accusation exertion (+11%) and connection services (+9%) sectors are starring the rally, driven by AI optimism. The maturation areas of the marketplace accounted for the bulk of the Index’s instrumentality successful Q4. The steadfast maintains a cautious stance toward AI-driven marketplace enthusiasm and believes that, fundamentally stable, high-quality, cash-generative businesses contiguous charismatic opportunities. Against this backdrop, the Fund returned 1.41% successful the quarter, lagging the Russell 1000 Value Index’s 3.8% return. In addition, you tin cheque the Fund's apical 5 holdings to spot its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Diamond Hill Large Cap Fund highlighted Zoetis Inc. (NYSE:ZTS) arsenic 1 of the starring comparative detractors. Zoetis Inc. (NYSE:ZTS)) is an carnal wellness institution focused connected the research, development, manufacturing, and merchantability of carnal wellness medications, vaccines, and diagnostic products. On February 2, 2026, Zoetis Inc. (NYSE:ZTS) banal closed astatine $124.94 per share. Zoetis Inc. (NYSE:ZTS) delivered a 3.41% instrumentality successful the past month, and its shares are down 27.46% implicit the past 12 months. Zoetis Inc. (NYSE:ZTS) has a marketplace capitalization of $55.06 billion.

Diamond Hill Large Cap Fund stated the pursuing regarding Zoetis Inc. (NYSE:ZTS) successful its 4th fourth 2025 capitalist letter:

"Pet and livestock pharmaceutical shaper Zoetis Inc. (NYSE:ZTS) underperformed successful Q4 aft reducing its 2026 outlook, citing less veterinary visits by favored owners. Long term, we stay affirmative connected the concern fixed its wide portfolio with aggregate maturation drivers and a beardown pipeline to code respective undertreated favored conditions."

Is Zoetis a Unique Dividend Play successful the Pharma Space for 2025?

Zoetis Inc. (NYSE:ZTS) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 72 hedge money portfolios held Zoetis Inc. (NYSE:ZTS) astatine the extremity of the 3rd quarter, compared to 75 successful the erstwhile quarter. While we admit the imaginable of Zoetis Inc. (NYSE:ZTS) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.