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Michael Burry cites Zoetis slide as competition pressure mounts
Zoetis shares are down about 40% in 2026, with fiscal Q2 revenue roughly flat, US revenue down 7% and international revenue up 6%.
Zoetis, the animal health company behind brands including Simparica Trio, is in focus after investor Michael Burry said he is bullish on the stock despite a steep selloff, according to disclosures cited by Yahoo Finance.
The report notes Zoetis has dropped about 40% so far in 2026 and is down more than 70% from its 2021 peak. Burry points to gross margins above 70% and lower debt versus peers, while warning that competition is pressuring key areas such as dermatology and parasite treatments as Elanco and Merck take share.
Operationally, Zoetis posted fiscal Q2 2026 revenue roughly flat, down about 1% organically, with US revenue down 7% and international revenue up 6%. Adjusted EPS grew 4% as the company continued stock buybacks, and the report says the FDA granted emergency use for Simparica Trio to treat New World screwworm in dogs.
The stock is trading near 12 times forward earnings versus a historical average of 30 times, the report adds. It also highlights a dividend near 3%, with a payout ratio in the low 30s, and notes the pipeline includes candidates for kidney disease, pain and obesity, alongside Lenivia and Portela rolling out in Canada and Europe.