$ZTS

Corcept (CORT) reported Q2 revenues of $256.1M, up 31.7% YoY, beating estimates. Zoetis (ZTS) reported flat revenues of $2.47B, missing expectations. Bristol-Myers Squibb (BMY) reported $12.97B in revenues, up 5.7% YoY, beating estimates. Eli Lilly (LLY) reported $22.97B in revenues, up 47.7% YoY, beating estimates. Market focus has shifted from AI to geopolitics and back to fundamentals.

Zoetis (ZTS) stock is 45.1% below its 52-week high. The company's free cash yield is 6.8% of its market value, higher than the S&P 500 median. Zoetis faces challenges due to fewer pet vet visits and increased competition, leading to a revenue guidance cut. The stock trades at 12.9 times earnings, reflecting concerns about sustained cash flow growth and debt levels.

Zoetis faces a potential 12-month supply gap for a key parasite-control drench due to an inability to find a replacement manufacturer for a critical ingredient, according to the Weekly Times. The shortage may impact sheep farmers' worm-control plans, especially in cases of drug-resistant worms. The specific product and active ingredient were not named in the report.

Corcept (CORT) reported the highest Q2 earnings beat and guidance raise, with its stock up 17.2%. Zoetis (ZTS) missed expectations, with flat revenue and lower guidance, but its stock rose 10.8%. Bristol-Myers Squibb (BMY) beat estimates with 5.7% revenue growth, while Phibro Animal Health (PAHC) reported a 4.8% revenue increase and a 10.3% stock rise.

Wall Street ended lower due to oil surge and AI spending concerns. Manhattan Associates (MANH) hit a 52-week high, with mixed analyst ratings. Etsy (ETSY) and Biogen (BIIB) were upgraded, while Werner (WERN) and Zoetis (ZTS) were downgraded. Mobileye (MBLY) and AST SpaceMobile (ASTS) saw split analyst verdicts. Market rotation favored earnings-driven stocks.

Zoetis (ZTS) reported a 0.24% sales decline in Q2 2026, its weakest growth in a decade. Median growth over the past 10 years was 6.8%. The decline was driven by a 6% drop in Companion Animal revenue, including a 16% fall in Dermatology sales, due to fewer vet visits, cost-conscious pet owners, and U.S. price cuts. Livestock revenue rose 11%, but not enough to offset the overall decline. Annual sales growth over the past year was 1.5%.

BestBrokers reports 172 companies lost significant market value since 2021, excluding those with major structural changes or splits. PayPal, Nike, and Zoom saw investments drop to 20-25% of their 2021 value by 2026. Factors included competition, product mix, and market shifts. Other notable losers include Block, Estée Lauder, and Adobe.

Zoetis received FDA approval for Convenia RTU for Dogs, a single-injection antibiotic treatment for bacterial skin infections in medium and large dogs. The product is expected to be available in Q1 2027, expanding Zoetis' dermatology portfolio and addressing compliance issues with oral antibiotics.

TD Cowen upgraded BlackRock (BLK) to Buy with a $1,405 price target, citing potential for $100+ EPS. Stifel upgraded Trex (TREX) to Buy with a $55 target, noting its premium valuation. Wells Fargo upgraded Venture Global (VG) to Overweight with a $21 target, citing AI data center strategy. BTIG upgraded American Electric (AEP) to Buy with a $147 target. Loop Capital downgraded Apple (AAPL) to Hold with a $330 target, citing iPhone shipment cuts.

Wall Street analysts released research calls on various companies. Upgrades include Akamai (AKAM) to Strong Buy, BlackRock (BLK) to Buy, and Venture Global (VG) to Overweight. Downgrades include Apple (AAPL) to Hold, Elanco (ELAN) to Hold, and Zoetis (ZTS) to Hold. Initiations include Ford (F) with Overweight and Sunoco (SUN) with Overweight. Markets were mixed, with Nasdaq futures lower and Treasury yields higher.