This Could Be One of the Best Healthcare Stock Buying Opportunities I've Seen in Years

2026-01-22 12:20:00 ET

For the first 10 years of its publicly traded life, leading animal healthcare stock Zoetis (NYSE: ZTS) easily outpaced the S&P 500 , rising 480% and doubling the index's total returns . However, since then, Zoetis' stock has slid nearly 40% as the company has delivered a handful of fine (but underwhelming) quarters that didn't live up to its stretched valuation.

Previously trading at an average price-to-earnings (P/E) ratio of 39 since 2013, Zoetis now commands a P/E ratio of just 21 -- essentially, its lowest-ever mark. At this discount, Zoetis is a clear long-term buy, in my opinion.

Zoetis remains the top dog in the animal healthcare industry, developing medicines, vaccines, diagnostics, and other therapeutics for companion animals and livestock. While its stock price may have declined recently, Zoetis and its research and development engine keep humming along. Chief Executive Officer Kristen Peck believes the company will have "at least one major market approval every year over the next several years," reinforcing the notion that Zoetis' future remains bright.

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