In the latest trading session, Zoetis (ZTS) closed at $121.93, marking a -2.42% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq increased by 0.17%.
Coming into today, shares of the animal health company had lost 1.15% in the past month. In that same time, the Medical sector lost 1.67%, while the S&P 500 gained 0.78%.
Investors will be eagerly watching for the performance of Zoetis in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 12, 2026. On that day, Zoetis is projected to report earnings of $1.4 per share, which would represent no growth from the year-ago period. At the same time, our most recent consensus estimate is projecting a revenue of $2.37 billion, reflecting a 2.08% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.34 per share and revenue of $9.45 billion. These totals would mark changes of +7.09% and 0%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Zoetis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.43% rise in the Zacks Consensus EPS estimate. Currently, Zoetis is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Zoetis is currently exchanging hands at a Forward P/E ratio of 18.43. For comparison, its industry has an average Forward P/E of 17.6, which means Zoetis is trading at a premium to the group.
Investors should also note that ZTS has a PEG ratio of 2.17 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Drugs industry stood at 1.21 at the close of the market yesterday.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zoetis Inc. (ZTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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