Morningstar Rating

Stock Research and Analysis

by David Krempa, CFA

Bulls Say

Improving standards of living in the emerging markets should drive greater adoption of meat-heavy diets.
Companion animals are increasingly viewed as family members, drastically increasing their willingness to spend on pet health care.
Since the animal health industry lacks large payers like Medicare, single-payer governments, or large insurance companies, Zoetis maintains significant pricing power. Read more 

Bears Say

Potential regulation or restriction of antibiotic use in animals could harm Zoetis' production-animal product sales.
Lower-margin emerging market sales will make up an increasing portion of company sales, creating a headwind to Zoetis' margins.
Emerging market customers may be more price-sensitive and more open to using generic products. Read more 

Management

With limited results by which to judge current management, we default to a standard stewardship rating. Juan Ramon Alaix has been president of the Pfizer Animal Health business since 2006 and will be CEO of Zoetis. Under his leadership, Pfizer's animal   Read more 

Profile

Zoetis sells anti-infectives, vaccines, parasiticides, and other health products for animals. The firm earns the majority of its revenue from production animals (cattle,  Read more 

Health Care a Leader in Moat Stocks 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.