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Zoetis (ZTS) Ascends But Remains Behind Market: Some Facts to Note

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Zoetis (ZTS - Free Report) ended the recent trading session at $147.53, demonstrating a +1.09% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.23%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 1.86%.

Shares of the animal health company witnessed a gain of 1.7% over the previous month, trailing the performance of the Medical sector with its gain of 4.41%, and the S&P 500's gain of 2.45%.

Market participants will be closely following the financial results of Zoetis in its upcoming release. The company plans to announce its earnings on November 4, 2025. The company's upcoming EPS is projected at $1.62, signifying a 2.53% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.41 billion, indicating a 0.98% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.35 per share and revenue of $9.5 billion. These totals would mark changes of +7.26% and +2.68%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Zoetis. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

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, 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 shifted 0.17% downward. At present, Zoetis boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Zoetis has a Forward P/E ratio of 22.99 right now. For comparison, its industry has an average Forward P/E of 15.69, which means Zoetis is trading at a premium to the group.

We can additionally observe that ZTS currently boasts a PEG ratio of 2.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical - Drugs industry held an average PEG ratio of 1.17.

The Medical - Drugs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% 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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