In the latest close session, Zoetis (ZTS) was down 1.32% at $146.25. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. On the other hand, the Dow registered a gain of 0.11%, and the technology-centric Nasdaq increased by 0.94%.
Heading into today, shares of the animal health company had lost 3.83% over the past month, lagging the Medical sector's gain of 5.49% and the S&P 500's gain of 2.32%.
The investment community will be closely monitoring the performance of Zoetis in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.64, marking a 3.8% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.43 billion, indicating a 1.56% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.34 per share and revenue of $9.51 billion, which would represent changes of +7.09% and +2.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Zoetis. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Zoetis currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Zoetis has a Forward P/E ratio of 23.38 right now. This represents a premium compared to its industry average Forward P/E of 15.43.
Investors should also note that ZTS has a PEG ratio of 2.39 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical – Drugs industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Medical – Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
