Zoetis (ZTS) ended the recent trading session at $172.24, demonstrating a +0.17% swing from the preceding day's closing price. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.

Heading into today, shares of the animal health company had gained 3.64% over the past month, lagging the Medical sector's gain of 4.51% and outpacing the S&P 500's gain of 1.02% in that time.

Investors will be eagerly watching for the performance of Zoetis in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 13, 2025. The company is expected to report EPS of $1.38, up 11.29% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.32 billion, indicating a 4.66% increase compared to the same quarter of the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Zoetis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1% fall in the Zacks Consensus EPS estimate. At present, Zoetis boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Zoetis is presently being traded at a Forward P/E ratio of 27.21. This denotes a premium relative to the industry's average Forward P/E of 20.11.

Also, we should mention that ZTS has a PEG ratio of 2.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Medical - Drugs industry was having an average PEG ratio of 1.81.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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