Zoetis

ZTS rose 3% to close at $79.97, primarily driven by the screwworm disease outbreak in Texas, which is expected to boost demand for Zoetis' vaccines and therapeutic products as a leading animal health company. Pre-market trading saw the stock touch $81.30, with the intraday high reaching $81.53 before retreating. Notably, ZTS remains in a deep correction, down 36.85% year-to-date and 53.64% from its 52-week high of $171.52, trading well below the 60-day moving average of $104.35. The company's fundamentals remain solid: Q1 2026 revenue of $2.26 billion grew 2.91% year-over-year, EPS reached $1.42 (up 5.97%), with a net margin of 26.57% and ROE of 73.25%; the current P/E of just 12.48 suggests the market's pessimistic outlook on fundamentals. While the screwworm event offers a concrete catalyst for the undervalued ZTS, whether it can reverse the extended downtrend remains to be seen.