The latest trading session saw Zoetis (ZTS) ending at $163.11, denoting a -1.16% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 1.97%. Elsewhere, the Dow lost 1.69%, while the tech-heavy Nasdaq lost 2.7%.

Heading into today, shares of the animal health company had gained 0.02% over the past month, outpacing the Medical sector's loss of 2.45% and the S&P 500's loss of 2.79% in that time.

The upcoming earnings release of Zoetis will be of great interest to investors. The company's earnings report is expected on May 6, 2025. The company's earnings per share (EPS) are projected to be $1.41, reflecting a 2.17% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.19 billion, showing a 0.12% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $6.08 per share and a revenue of $9.31 billion, demonstrating changes of +2.7% and +0.59%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Zoetis. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. Zoetis currently has a Zacks Rank of #4 (Sell).

From a valuation perspective, Zoetis is currently exchanging hands at a Forward P/E ratio of 27.15. This represents a premium compared to its industry's average Forward P/E of 15.51.

It's also important to note that ZTS currently trades at a PEG ratio of 2.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Drugs industry was having an average PEG ratio of 1.06.

The Medical - Drugs industry is part of the Medical sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Zoetis Inc. (ZTS) : Free Stock Analysis Report

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

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