Zoetis (ZTS) at $77 is priced for 1.7% annual decline despite being the world's largest animal health company with 72% gross margins and 27% ROIC; even flat cash flows deliver 7.9% annual returns. Key risks include Apoquel/Cytopoint dermatology sales declining 16%, consumer discretionary headwinds when spending tightens, and patent expirations on products like Cerenia and Convenia.

Analysis of Zoetis as an institutional investment opportunity, examining the company's business model, market position, and growth drivers in animal health. Key risks include competitive pressures, regulatory changes, and economic sensitivity to pet and livestock spending.

The New World Screwworm parasite has returned to the US after decades of eradication, creating a potential massive market for livestock treatments. Zoetis (ZTS) is positioned as the primary supplier of parasiticide treatments, potentially capturing significant agricultural spending as ranchers combat herd losses.