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Zoetis (ZTS) Stock Sinks As Market Gains: Here's Why
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Zoetis (ZTS - Free Report) closed the most recent trading day at $149.79, moving -1.29% from the previous trading session. This move lagged the S&P 500's daily gain of 0.27%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.37%.
The animal health company's shares have seen an increase of 1.83% over the last month, not keeping up with the Medical sector's gain of 6.54% and the S&P 500's gain of 1.85%.
The investment community will be closely monitoring the performance of Zoetis in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.64, marking a 3.8% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.43 billion, indicating a 1.56% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.34 per share and revenue of $9.51 billion, which would represent changes of +7.09% and +2.79%, respectively, from the prior year.
Investors might also notice 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term 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 has shifted 0.08% upward. Right now, Zoetis possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Zoetis is presently trading at a Forward P/E ratio of 23.94. This denotes a premium relative to the industry average Forward P/E of 15.52.
We can also see that ZTS currently has a PEG ratio of 2.44. 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 average PEG ratio for the Medical - Drugs industry stood at 1.55 at the close of the market yesterday.
The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 87, putting it in the top 36% of all 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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Zoetis (ZTS) Stock Sinks As Market Gains: Here's Why
Zoetis (ZTS - Free Report) closed the most recent trading day at $149.79, moving -1.29% from the previous trading session. This move lagged the S&P 500's daily gain of 0.27%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.37%.
The animal health company's shares have seen an increase of 1.83% over the last month, not keeping up with the Medical sector's gain of 6.54% and the S&P 500's gain of 1.85%.
The investment community will be closely monitoring the performance of Zoetis in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.64, marking a 3.8% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.43 billion, indicating a 1.56% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.34 per share and revenue of $9.51 billion, which would represent changes of +7.09% and +2.79%, respectively, from the prior year.
Investors might also notice 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term 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 has shifted 0.08% upward. Right now, Zoetis possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Zoetis is presently trading at a Forward P/E ratio of 23.94. This denotes a premium relative to the industry average Forward P/E of 15.52.
We can also see that ZTS currently has a PEG ratio of 2.44. 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 average PEG ratio for the Medical - Drugs industry stood at 1.55 at the close of the market yesterday.
The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 87, putting it in the top 36% of all 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.