The latest trading session saw Zoetis (ZTS) ending at $152.30, denoting a +0.92% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 2.03%. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 2.74%.
Prior to today's trading, shares of the animal health company had lost 7.31% over the past month. This has was narrower than the Medical sector's loss of 8.57% and lagged the S&P 500's loss of 5.07% in that time.
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 May 6, 2025. The company is predicted to post an EPS of $1.40, indicating a 1.45% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.19 billion, up 0.02% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.07 per share and revenue of $9.31 billion, which would represent changes of +2.53% and +0.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Zoetis. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Zoetis currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Zoetis is presently trading at a Forward P/E ratio of 24.85. This indicates a premium in contrast to its industry's Forward P/E of 15.31.
Also, we should mention that ZTS has a PEG ratio of 2.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Drugs industry was having an average PEG ratio of 1.16.
The Medical - Drugs industry is part of the Medical sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zoetis Inc. (ZTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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