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Zoetis (ZTS) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with Zoetis (ZTS - Free Report) standing at $179.84, reflecting a -0.51% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.64%, while the tech-heavy Nasdaq added 1.03%.

Coming into today, shares of the animal health company had gained 2.44% in the past month. In that same time, the Medical sector lost 0.54%, while the S&P 500 lost 1.16%.

The investment community will be closely monitoring the performance of Zoetis in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2024. On that day, Zoetis is projected to report earnings of $1.49 per share, which would represent year-over-year growth of 5.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.3 billion, indicating a 5.64% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.76 per share and revenue of $9.13 billion. These totals would mark changes of +8.27% and +6.87%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Zoetis. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Zoetis holds a Zacks Rank of #4 (Sell).

In terms of valuation, Zoetis is presently being traded at a Forward P/E ratio of 31.39. This signifies a premium in comparison to the average Forward P/E of 15.41 for its industry.

We can additionally observe that ZTS currently boasts a PEG ratio of 2.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Drugs industry had an average PEG ratio of 1.52 as trading concluded yesterday.

The Medical - Drugs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 39% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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