Zoetis (ZTS) closed at $119.04 in the latest trading session, marking a -1.42% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the animal health company had gained 2.91% outpaced the Medical sector's loss of 1.19% and lagged the S&P 500's gain of 5.98%.
Market participants will be closely following the financial results of Zoetis in its upcoming release. The company plans to announce its earnings on May 7, 2026. It is anticipated that the company will report an EPS of $1.61, marking a 8.78% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.31 billion, showing a 3.96% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7 per share and revenue of $9.9 billion, which would represent changes of +9.2% and +4.59%, respectively, from the prior year.
Any recent changes to analyst estimates for Zoetis should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Right now, Zoetis possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Zoetis is currently trading at a Forward P/E ratio of 17.25. This represents a premium compared to its industry average Forward P/E of 16.14.
Also, we should mention that ZTS has a PEG ratio of 1.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Drugs industry had an average PEG ratio of 1.34 as trading concluded yesterday.
The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Zoetis Inc. (ZTS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).