Zoetis Shares Climb 0.65% on Earnings Beat and Reduced Short Interest, Yet Trade Volume Lands 272nd

Zoetis (ZTS) rose 0.65% on 22 August 2025, closing at $156.62 with a trading volume of $380 million, ranking 272nd in market activity. Technical indicators show a positive short-term trend, with the stock gaining in 8 of the past 10 sessions. Short-term moving averages are above long-term averages, signaling a bullish bias, though volume dipped by 395,000 shares amid price gains, raising concerns about potential divergence. Support levels are identified at $154.88 and $152.05, with a stop-loss recommendation at $149.25 (-4.71%).

Institutional ownership remains stable, with Capital Analysts LLC increasing its stake by 7.9% to 62,275 shares. Recent analyst activity includes a downgrade from "Outperform" to "Market Perform" by Leerink Partners, while UBS Group cut its price target to $170.00. The stock’s 12-month earnings growth projection stands at 11.20%, supported by a 34.42% payout ratio and a 1.28% dividend yield. Zoetis’ P/E ratio of 26.91 trails the medical sector average of 31.15, suggesting relative value.

Short interest in ZTS has declined by 12.36% month-on-month, reflecting improved investor sentiment. The company reported Q2 earnings of $1.76 per share, exceeding estimates by $0.14, with revenue up 4.2% year-over-year. Institutional ownership accounts for 92.80% of shares, while insiders sold $110,840 worth of stock in June. Analysts maintain a "Moderate Buy" rating, with a consensus price target of $202.43.

A backtested strategy of holding the top 500 volume stocks for one day from 2022 to 2025 yielded a 31.52% total return, with a Sharpe ratio of 0.79. However, the strategy faced a maximum drawdown of -29.16%, underscoring its vulnerability during market downturns.