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Zoetis (ZTS) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest close session, Zoetis (ZTS - Free Report) was up +1.68% at $143.50. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.44%.

Shares of the animal health company have depreciated by 8.82% over the course of the past month, underperforming the Medical sector's loss of 0.94%, and the S&P 500's gain of 2.72%.

Investors will be eagerly watching for the performance of Zoetis in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 4, 2025. The company is forecasted to report an EPS of $1.64, showcasing a 3.8% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.43 billion, indicating a 1.56% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.34 per share and revenue of $9.51 billion, indicating changes of +7.09% and +2.79%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Zoetis. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Zoetis presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Zoetis currently has a Forward P/E ratio of 22.26. This represents a premium compared to its industry average Forward P/E of 15.18.

It is also worth noting that ZTS currently has a PEG ratio of 2.27. 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 of the close of trade yesterday, the Medical - Drugs industry held an average PEG ratio of 1.32.

The Medical - Drugs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ZTS in the coming trading sessions, be sure to utilize Zacks.com.


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