Zoetis (ZTS) closed at $165.02 in the latest trading session, marking a +0.94% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.

Shares of the animal health company witnessed a loss of 7.48% over the previous month, trailing the performance of the Medical sector with its loss of 5.77% and the S&P 500's loss of 2.8%.

Market participants will be closely following the financial results of Zoetis in its upcoming release. The company plans to announce its earnings on February 13, 2025. The company is predicted to post an EPS of $1.38, indicating a 11.29% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.32 billion, indicating a 4.98% upward movement from the same quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Zoetis presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Zoetis is currently exchanging hands at a Forward P/E ratio of 25.63. This denotes a premium relative to the industry's average Forward P/E of 18.63.

We can additionally observe that ZTS currently boasts a PEG ratio of 2.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Medical - Drugs industry stood at 1.81 at the close of the market yesterday.

The Medical - Drugs industry is part of the Medical sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.

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.

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