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Zoetis (ZTS) Stock Sinks As Market Gains: What You Should Know
Zoetis (ZTS - Free Report) closed at $165.18 in the latest trading session, marking a -1.82% move from the prior day. This change lagged the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.
Prior to today's trading, shares of the animal health company had gained 13.56% over the past month. This has outpaced the Medical sector's loss of 0.75% and the S&P 500's gain of 5.73% in that time.
Investors will be hoping for strength from Zoetis as it approaches its next earnings release, which is expected to be February 14, 2023. On that day, Zoetis is projected to report earnings of $1.15 per share, which would represent year-over-year growth of 15%. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, up 1.9% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Zoetis. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. Zoetis is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note Zoetis's current valuation metrics, including its Forward P/E ratio of 31.35. For comparison, its industry has an average Forward P/E of 13.68, which means Zoetis is trading at a premium to the group.
Investors should also note that ZTS has a PEG ratio of 2.84 right now. 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 1.19 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 87, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.