Zoetis (ZTS) ended the recent trading session at $160.06, demonstrating a -1% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.91%. On the other hand, the Dow registered a loss of 1.5%, and the technology-centric Nasdaq decreased by 1.96%.

Shares of the animal health company have depreciated by 7.02% over the course of the past month, underperforming the Medical sector's loss of 1.88% and outperforming the S&P 500's loss of 7.38%.

The investment community will be closely monitoring the performance of Zoetis in its forthcoming earnings report. In that report, analysts expect Zoetis to post earnings of $1.41 per share. This would mark year-over-year growth of 2.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.19 billion, up 0.12% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.12 per share and a revenue of $9.31 billion, representing changes of +3.38% and +0.59%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Zoetis. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.58% lower. Zoetis is currently a Zacks Rank #4 (Sell).

With respect to valuation, Zoetis is currently being traded at a Forward P/E ratio of 26.44. This represents a premium compared to its industry's average Forward P/E of 18.24.

Meanwhile, ZTS's PEG ratio is currently 2.84. 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 of the close of trade yesterday, the Medical - Drugs industry held an average PEG ratio of 1.06.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.

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This article originally published on Zacks Investment Research (zacks.com).

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