Yahoo Finance Zoetis (ZTS) Outpaces Stock Market Gains: What You Should Know
Zoetis (ZTS) closed the most recent trading day at $176.88, moving +1.42% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.98%.
Prior to today's trading, shares of the animal health company had gained 8.16% over the past month. This has outpaced the Medical sector's gain of 4.5% and the S&P 500's gain of 4.59% in that time.
Zoetis will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2023. On that day, Zoetis is projected to report earnings of $1.29 per share, which would represent a year-over-year decline of 2.27%. Our most recent consensus estimate is calling for quarterly revenue of $2.03 billion, up 2.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $8.63 billion, which would represent changes of +10.45% and +6.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Zoetis should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Zoetis is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Zoetis has a Forward P/E ratio of 32.37 right now. This represents a premium compared to its industry's average Forward P/E of 12.57.
Investors should also note that ZTS has a PEG ratio of 2.7 right now. 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. The Medical - Drugs was holding an average PEG ratio of 0.94 at yesterday's closing price.
The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Zoetis Inc. (ZTS) : Free Stock Analysis Report
