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Zoetis (ZTS) Outpaces Stock Market Gains: What You Should Know

Zoetis (ZTS) closed at $171 in the latest trading session, marking a +1.9% move from the prior day. This move outpaced the S&P 500's daily gain of 1.47%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 7.94%.

Coming into today, shares of the animal health company had gained 12.65% in the past month. In that same time, the Medical sector lost 0.48%, while the S&P 500 gained 7.41%.

Investors will be hoping for strength from Zoetis as it approaches its next earnings release, which is expected to be February 14, 2023. The company is expected to report EPS of $1.15, up 15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.01 billion, up 1.98% from the prior-year quarter.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate has moved 0.84% lower. Zoetis is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Zoetis has a Forward P/E ratio of 31.52 right now. For comparison, its industry has an average Forward P/E of 11.95, which means Zoetis is trading at a premium to the group.

It is also worth noting that ZTS currently has a PEG ratio of 2.86. 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. Medical - Drugs stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 97, which puts 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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