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

Zoetis (ZTS) closed at $163.09 in the latest trading session, marking a -0.74% move from the prior day. This change lagged the S&P 500's 0.12% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 4.09%.

Heading into today, shares of the animal health company had lost 11.25% over the past month, lagging the Medical sector's loss of 2.13% and the S&P 500's gain of 3.98% in that time.

Investors will be hoping for strength from Zoetis as it approaches its next earnings release. On that day, Zoetis is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 9.17%. Meanwhile, our latest consensus estimate is calling for revenue of $2.17 billion, up 5.74% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.41 per share and revenue of $8.64 billion, which would represent changes of +10.86% and +6.9%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for Zoetis. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Zoetis currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Zoetis currently has a Forward P/E ratio of 30.4. Its industry sports an average Forward P/E of 17.26, so we one might conclude that Zoetis is trading at a premium comparatively.

Meanwhile, ZTS's PEG ratio is currently 2.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Drugs industry currently had an average PEG ratio of 1.34 as of yesterday's close.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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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