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The latest trading session saw Zoetis (ZTS) ending at $156.40, denoting a +0.62% adjustment from its last day's close. This change outpaced the S&P 500's 0.15% gain on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the animal health company had lost 4% in the past month. In that same time, the Medical sector lost 4.39%, while the S&P 500 lost 0.21%.
The investment community will be closely monitoring the performance of Zoetis in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2025. The company's earnings per share (EPS) are projected to be $1.40, reflecting a 1.45% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.19 billion, reflecting a 0.02% rise from the equivalent quarter last year.
ZTS's full-year Zacks Consensus Estimates are calling for earnings of $6.07 per share and revenue of $9.31 billion. These results would represent year-over-year changes of +2.53% and +0.55%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoetis. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. Zoetis is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Zoetis is currently trading at a Forward P/E ratio of 25.59. For comparison, its industry has an average Forward P/E of 16.5, which means Zoetis is trading at a premium to the group.
Also, we should mention that ZTS has a PEG ratio of 2.72. 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 1.21.
The Medical - Drugs industry is part of the Medical sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.