ZTS's fundamentals remain strong with steady revenue growth in animal health, but recent underperformance suggests technical resistance near $180. Valuation metrics like P/E (35x) appear stretched, warranting caution despite solid earnings.

Market sentiment is mixed, with institutional interest and vaccine approvals offering upside potential, but recent underperformance reflects broader sector rotation. Short-term trends favor consolidation before a potential rebound.

Long-term risks include regulatory hurdles in vaccine approvals and exposure to volatile beef prices, but ZTS's diversified portfolio mitigates downside. The stock's dip may present a buying opportunity for patient investors.

Technical signals show ZTS testing key support at $170 with declining RSI, suggesting further downside if volume remains weak. MACD crossover confirms bearish momentum in the short term.