Zoetis (ZTS) closed the most recent trading day at $164.84, moving +0.81% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.09%. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq increased by 1.03%.

Prior to today's trading, shares of the animal health company had lost 7.46% over the past month. This has lagged the Medical sector's loss of 2.76% and the S&P 500's loss of 0.71% in that time.

Investors will be eagerly watching for the performance of Zoetis in its upcoming earnings disclosure. In that report, analysts expect Zoetis to post earnings of $1.38 per share. This would mark year-over-year growth of 11.29%. Meanwhile, our latest consensus estimate is calling for revenue of $2.32 billion, up 4.98% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.91 per share and a revenue of $9.26 billion, demonstrating changes of +11.09% and +8.41%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Zoetis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 witnessed a 0.08% increase. At present, Zoetis boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Zoetis is presently trading at a Forward P/E ratio of 27.69. This valuation marks a premium compared to its industry's average Forward P/E of 15.46.

One should further note that ZTS currently holds a PEG ratio of 2.72. 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 Medical - Drugs industry had an average PEG ratio of 1.72 as trading concluded yesterday.

The Medical - Drugs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% 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.

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