Zoetis: Good Potential To Re-Rate Higher Over 3 To 5 Years

Macquarie Asset Management35 FollowersFollow5ShareSavePlay(4min)CommentsSummaryProceeds from the sale of Kenvue were used to purchase a position in Zoetis Inc., a leading global provider of animal health products.The animal health industry is largely insulated from several drawbacks associated with the human pharmaceutical industry, such as product concentration and large revenue declines following patent expirations.Zoetis maintained consistently positive operational revenue growth over the past 16 years, largely in the mid- to high-single-digit range.While the stock's price-to-earnings ratio was not especially low on an absolute basis, it, along with other valuation measures, was near 10-year lows.We also believed there was good potential for Zoetis's shares to re-rate higher over our investment horizon of three to five years. JHVEPhoto/iStock Editorial via Getty Images The following segment was excerpted from the Nomura Value Fund Q4 2025 Commentary. Proceeds from the sale of Kenvue (KVUE) were used to purchase a position in Zoetis Inc. (ZTS), aThis article was written byMacquarie Asset Management35 FollowersFollowMacquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is an integrated asset manager across public and private markets offering a diverse range of capabilities, including real assets, real estate, credit, equities and multi-asset solutions. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide. Delaware Funds by Macquarie refers to certain investment solutions that MAM distributes, offers, or advises. Investment advisory services are provided to the Delaware Funds by Delaware Management Company, a series of Macquarie Investment Management Business Trust (MIMBT), a Securities and Exchange Commission (SEC) registered investment adviser.

The Delaware Funds are distributed by Delaware Distributors, L.P., a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA) and an affiliate of MIMBT. Note: This account is not managed or monitored by Macquarie Asset Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use the Macquarie Asset Management's official channels.