Zoetis (ZTS – Free Report) closed the most recent trading day at $163.03, moving -0.08% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.08%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 0.52%.
The animal health company’s shares have seen an increase of 3.65% over the last month, surpassing the Medical sector’s loss of 1.03% and the S&P 500’s loss of 7.33%.
The upcoming earnings release of Zoetis will be of great interest to investors. The company is expected to report EPS of $1.41, up 2.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.19 billion, up 0.12% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.12 per share and revenue of $9.31 billion. These totals would mark changes of +3.38% and +0.59%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Zoetis. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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 shifted 0.14% upward. Zoetis presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Zoetis is currently being traded at a Forward P/E ratio of 26.68. This denotes a premium relative to the industry’s average Forward P/E of 17.23.
It’s also important to note that ZTS currently trades at a PEG ratio of 2.86. 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. As the market closed yesterday, the Medical – Drugs industry was having an average PEG ratio of 0.99.
The Medical – Drugs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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