Argus Research downgraded Zoetis Inc. to 'Hold' from 'Buy'.
The firm cited increased competition, shifting animal health market demand, and margin compression.
These pressures caused Zoetis to miss Wall Street expectations.
The company subsequently lowered its earnings and revenue guidance.
Zoetis stock declined significantly over the past year.
Law firm Levi & Korsinsky launched a securities fraud investigation.
The probe targets Zoetis' first-quarter 2026 financial results and its subsequent guidance cut.
This guidance cut caused a sharp drop in the stock price on May 7, 2026.