In the latest close session, Zoetis (ZTS) was up +2.37% at $74.81. This change outpaced the S&P 500's 0.6% gain on the day. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.64%.
Shares of the animal health company witnessed a gain of 0.3% over the previous month, beating the performance of the Medical sector with its loss of 1.97%, and underperforming the S&P 500's gain of 1.34%.
Market participants will be closely following the financial results of Zoetis in its upcoming release. The company plans to announce its earnings on November 5, 2026. The company is forecasted to report an EPS of $1.52, showcasing a 10.59% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.31 billion, indicating a 3.66% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.2 per share and a revenue of $9.24 billion, demonstrating changes of -3.28% and -2.45%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Zoetis. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Zoetis possesses a Zacks Rank of #4 (Sell).
Digging into valuation, Zoetis currently has a Forward P/E ratio of 11.78. This expresses a discount compared to the average Forward P/E of 16.14 of its industry.
We can also see that ZTS currently has a PEG ratio of 1.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Drugs industry was having an average PEG ratio of 1.69.
The Medical - Drugs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Zoetis Inc. (ZTS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).