Zoetis (ZTS) closed the most recent trading day at $74.07, moving -1.75% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.9%.
Heading into today, shares of the animal health company had lost 5.7% over the past month, lagging the Medical sector's gain of 4.34% and the S&P 500's gain of 1.27%.
Investors will be eagerly watching for the performance of Zoetis in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2026. In that report, analysts expect Zoetis to post earnings of $1.85 per share. This would mark year-over-year growth of 5.11%. At the same time, our most recent consensus estimate is projecting a revenue of $2.49 billion, reflecting a 1.42% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.89 per share and a revenue of $9.72 billion, representing changes of +7.49% and +2.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Zoetis. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. Zoetis currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Zoetis is presently trading at a Forward P/E ratio of 10.94. This indicates a discount in contrast to its industry's Forward P/E of 17.15.
Meanwhile, ZTS's PEG ratio is currently 1.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Medical - Drugs industry stood at 1.74 at the close of the market yesterday.
The Medical - Drugs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Report
This article originally published on Zacks Investment Research (zacks.com).