Zoetis: Another Bad Quarter, Some Value Trap Risk But Shares Still Cheap

Zoetis reported Q2 earnings that were mixed and cut its forward guidance, pressuring the stock’s margin of safety. While weakness in U.S. pet-related sales weighed on results, strength in other segments provided partial offsets. Overall, the risk/reward is viewed as still favoring bulls despite the guidance setback.

Analysis

Zoetis reported Q2 earnings that were mixed and cut its forward guidance, pressuring the stock’s margin of safety. While weakness in U.S. pet-related sales weighed on results, strength in other segments provided partial offsets. Overall, the risk/reward is viewed as still favoring bulls despite the guidance setback.