Zoetis (ZTS) Outperforms Broader Market: What You Need to Know

Zoetis (ZTS) ended the recent trading session at $123.78, demonstrating a +1.26% change from the preceding day's closing price. This change outpaced the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.52%. The stock of animal health company has risen by 0.15% in the past month, lagging the Medical sector's gain of 2.25% and the S&P 500's gain of 3%.Analysts and investors alike will be keeping a close eye on the performance of Zoetis in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.4, showcasing no movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.36 billion, up 1.89% from the year-ago period. ZTS's full-year Zacks Consensus Estimates are calling for earnings of $6.34 per share and revenue of $9.44 billion. These results would represent year-over-year changes of +7.09% and +2%, respectively. Any recent changes to analyst estimates for Zoetis should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has moved 0.13% lower. As of now, Zoetis holds a Zacks Rank of #3 (Hold). In terms of valuation, Zoetis is currently trading at a Forward P/E ratio of 19.3. This signifies a discount in comparison to the average Forward P/E of 19.43 for its industry. Also, we should mention that ZTS has a PEG ratio of 2.66. 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 1.17 at yesterday's closing price. The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 29% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zoetis Inc. (ZTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks