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Here's Why Zoetis (ZTS) Fell More Than Broader Market

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Zoetis (ZTS - Free Report) ended the recent trading session at $148.81, demonstrating a -1.46% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq increased by 0.15%.

The animal health company's stock has dropped by 5.14% in the past month, falling short of the Medical sector's loss of 0.96% and the S&P 500's gain of 3.39%.

Market participants will be closely following the financial results of Zoetis in its upcoming release. The company plans to announce its earnings on August 5, 2025. The company's upcoming EPS is projected at $1.61, signifying a 3.21% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.4 billion, indicating a 1.7% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $6.26 per share and a revenue of $9.51 billion, demonstrating changes of +5.74% and +2.7%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Zoetis. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. As of now, Zoetis holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Zoetis is holding a Forward P/E ratio of 24.11. This represents a premium compared to its industry average Forward P/E of 14.26.

We can also see that ZTS currently has a PEG ratio of 2.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Drugs industry currently had an average PEG ratio of 1.32 as of yesterday's close.

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 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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