What Makes Zoetis (ZTS) an Attractive Bet?

Soumya Eswaran Wed, June 17, 2026 at 10:16 AM EDT 3 min read **

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Renaissance Investment Management, an investment management company, released its Q1 2026 “Large Cap Growth Strategy.” A copy of the letter can be downloaded here. Stocks fell sharply in the first quarter due to the Iran conflict. The Energy and Materials sectors outperformed, Financials and Consumer Discretionary lagged. Large-cap stocks underperformed smaller-cap stocks, and Value outperformed Growth. The portfolio outperformed the S&P 500’s -4.3% return but lagged the Russell 1000 Growth Index, which fell 9.8%. In this uncertain environment, the firm remains aware of the risks and emerging investment opportunities. In addition, you can check the Strategy’s top 5 holdings for its best picks for 2026.

In its first-quarter 2026 investor letter, Renaissance Investment Large Cap Growth Strategy highlighted Zoetis Inc. (NYSE:ZTS) as anewly added position. Zoetis Inc. (NYSE:ZTS) is an animal health company focused on animal health medications, vaccines, and diagnostic products. On June 16, 2026, Zoetis Inc. (NYSE:ZTS) closed at $79.33 per share. One-month return of Zoetis Inc. (NYSE:ZTS) was 0.04%, and its shares lost 48.57% over the past 52 weeks. Zoetis Inc. (NYSE:ZTS) has a market capitalization of $33.25 billion.

Renaissance Investment Large Cap Growth Strategy stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q1 2026 investor letter:

"In the first quarter, we made several changes to our portfolio as market rotation provided us with several opportunities to upgrade the quality of the portfolio. In March, we added a new position in the Health Care sector with Zoetis Inc.** (NYSE:ZTS), the global leader in vaccines and pharmaceuticals for both the companion animal and livestock markets. Zoetis has faced difficult growth comparisons since the latter part of 2022, after an initial spike in demand caused by COVID-driven pet adoptions wore off and operational missteps in new drug launches hampered growth. However, we believe that revenue is positioned to reaccelerate as COVID-era pets approach the age when preventive and protective treatments begin, driving demand for professional veterinary services. We particularly like the company’s new drug pipeline, with new drug launches over the next four years targeting cancer, kidney, heart, obesity, and anxiety treatments. In addition, we believe that increasing demand for protein consumption and a relaunch of the company’s pain medication will likewise help reverse recent revenue deceleration."

Is Zoetis a Unique Dividend Play in the Pharma Space for 2025? Zoetis Inc. (NYSE:ZTS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held Zoetis Inc. (NYSE:ZTS) at the end of the first quarter, compared to 69 in the previous quarter. While we acknowledge the potential of Zoetis Inc. (NYSE:ZTS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Story Continues In another article, we covered Zoetis Inc. (NYSE:ZTS) and shared the list of best healthcare stocks to buy with the highest upside potential. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.