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Zoetis (ZTS) stock trades at 13.5 times earnings, against 22.3 for the median S&P 500 company. The shares lost 29.6% over the past twelve months, and the price appears to assume the company has stopped growing. For the discount to be a gift, Zoetis has to keep its high profit on each sale while its dermatology medicines stop losing sales. So does Zoetis still keep as much of each sale as it did?

Zoetis Still Keeps More Of Each Sale Than Most

Yes. The maker of medicines and vaccines for pets and livestock posted an operating margin of 37.7% over the four quarters ended September 2026, outpacing the 19.0% median for S&P 500 companies. That…