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Zoetis (ZTS) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Zoetis (ZTS - Free Report) closed at $70.27, marking a -1.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.01%.
Coming into today, shares of the animal health company had lost 7.62% in the past month. In that same time, the Medical sector lost 4.15%, while the S&P 500 gained 0.53%.
The investment community will be paying close attention to the earnings performance of Zoetis in its upcoming release. It is anticipated that the company will report an EPS of $1.52, marking a 10.59% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.31 billion, down 3.66% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.2 per share and revenue of $9.24 billion, which would represent changes of -3.28% and -2.45%, respectively, from the prior year.
Investors should also note any 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. As of now, Zoetis holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Zoetis is presently being traded at a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 16.15, so one might conclude that Zoetis is trading at a discount comparatively.
It's also important to note that ZTS currently trades at a PEG ratio of 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - Drugs stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Medical - Drugs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Zoetis (ZTS) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Zoetis (ZTS - Free Report) closed at $70.27, marking a -1.87% move from the previous day. This move lagged the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.01%.
Coming into today, shares of the animal health company had lost 7.62% in the past month. In that same time, the Medical sector lost 4.15%, while the S&P 500 gained 0.53%.
The investment community will be paying close attention to the earnings performance of Zoetis in its upcoming release. It is anticipated that the company will report an EPS of $1.52, marking a 10.59% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.31 billion, down 3.66% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.2 per share and revenue of $9.24 billion, which would represent changes of -3.28% and -2.45%, respectively, from the prior year.
Investors should also note any 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. As of now, Zoetis holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Zoetis is presently being traded at a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 16.15, so one might conclude that Zoetis is trading at a discount comparatively.
It's also important to note that ZTS currently trades at a PEG ratio of 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - Drugs stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Medical - Drugs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.