In the latest close session, Zoetis (ZTS) was down 2.02% at $122.41. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 1.43%.
Prior to today's trading, shares of the animal health company had lost 3.42% lagged the Medical sector's gain of 0.16% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of Zoetis in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2026. The company's earnings per share (EPS) are projected to be $1.4, reflecting no change from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.37 billion, indicating a 2.08% increase compared to the same quarter of the previous 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 should also take note of any recent adjustments to analyst estimates for Zoetis. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% higher. Zoetis is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Zoetis is currently being traded at a Forward P/E ratio of 18.36. This represents a premium compared to its industry average Forward P/E of 17.2.
One should further note that ZTS currently holds a PEG ratio of 2.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Drugs industry held an average PEG ratio of 1.15.
The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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