Zoetis (ZTS) closed at $170.37 in the latest trading session, marking a +1.87% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.55%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.7%.

The animal health company's shares have seen a decrease of 3.95% over the last month, not keeping up with the Medical sector's gain of 0.52% and outstripping the S&P 500's loss of 5.56%.

Market participants will be closely following the financial results of Zoetis in its upcoming release. The company is expected to report EPS of $1.41, up 2.17% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.2 billion, indicating a 0.47% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.12 per share and a revenue of $9.31 billion, signifying shifts of +3.38% and +0.59%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Zoetis. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.83% downward. Zoetis is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Zoetis is currently trading at a Forward P/E ratio of 27.35. For comparison, its industry has an average Forward P/E of 19.2, which means Zoetis is trading at a premium to the group.

It is also worth noting that ZTS currently has a PEG ratio of 2.93. 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 bearing a Zacks Industry Rank of 133, finds itself in the bottom 48% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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