Here's Why Zoetis (ZTS) Gained But Lagged the Market Today

Company Overview - Zoetis shares have decreased by 7.46% over the past month, underperforming the Medical sector's loss of 2.76% and the S&P 500's loss of 0.71% [1] - The company closed the most recent trading day at $164.84, with a daily increase of 0.81%, lagging behind the S&P 500's daily gain of 1.09% [5] Analyst Estimates - Recent changes to analyst estimates for Zoetis indicate optimism regarding the company's business and profitability, with a 0.08% increase in the Zacks Consensus EPS estimate over the last 30 days [2][7] - For the full year, earnings are projected at$ 5.91 per share and revenue at $9.26 billion, reflecting increases of +11.09% and +8.41% respectively from the previous year [6] Valuation Metrics - Zoetis is currently trading at a Forward P/E ratio of 27.69, which is a premium compared to the industry's average Forward P/E of 15.46 [3] - The company has a PEG ratio of 2.72, while the Medical - Drugs industry average PEG ratio is 1.72 [11] Industry Context - The Medical - Drugs industry, which includes Zoetis, holds a Zacks Industry Rank of 75, placing it in the top 30% of over 250 industries [8] - The Zacks Rank system indicates that stocks rated 1 (Strong Buy) have historically produced an average annual return of +25% since 1988 [7] Upcoming Performance Expectations - Analysts expect Zoetis to report earnings of$ 1.38 per share in the upcoming earnings disclosure, representing year-over-year growth of 11.29%, with a revenue estimate of $2.32 billion, up 4.98% from the prior-year quarter [9]