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Zoetis (ZTS) closed the most recent trading day at $164.84, moving +0.81% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.09%. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq increased by 1.03%.
Prior to today's trading, shares of the animal health company had lost 7.46% over the past month. This has lagged the Medical sector's loss of 2.76% and the S&P 500's loss of 0.71% in that time.
Investors will be eagerly watching for the performance of Zoetis in its upcoming earnings disclosure. In that report, analysts expect Zoetis to post earnings of $1.38 per share. This would mark year-over-year growth of 11.29%. Meanwhile, our latest consensus estimate is calling for revenue of $2.32 billion, up 4.98% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.91 per share and a revenue of $9.26 billion, demonstrating changes of +11.09% and +8.41%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Zoetis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. At present, Zoetis boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Zoetis is presently trading at a Forward P/E ratio of 27.69. This valuation marks a premium compared to its industry's average Forward P/E of 15.46.
One should further note that ZTS currently holds a PEG ratio of 2.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Drugs industry had an average PEG ratio of 1.72 as trading concluded yesterday.
The Medical - Drugs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.