Zoetis (ZTS) closed the most recent trading day at $116.65, moving -1.04% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.49%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 0.9%.
Coming into today, shares of the animal health company had gained 1.32% in the past month. In that same time, the Medical sector lost 0.86%, while the S&P 500 gained 12.8%.
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 May 7, 2026. It is anticipated that the company will report an EPS of $1.62, marking a 9.46% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.3 billion, up 3.61% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.02 per share and a revenue of $9.89 billion, representing changes of +9.52% and +4.49%, respectively, from the prior year.
Any recent changes to analyst estimates for Zoetis should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. Zoetis is currently a Zacks Rank #3 (Hold).
In terms of valuation, Zoetis is presently being traded at a Forward P/E ratio of 16.78. Its industry sports an average Forward P/E of 15.58, so one might conclude that Zoetis is trading at a premium comparatively.
It's also important to note that ZTS currently trades at a PEG ratio of 1.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Medical - Drugs industry had an average PEG ratio of 1.33.
The Medical - Drugs industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Zoetis Inc. (ZTS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).