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

Company Performance - Zoetis (ZTS) closed at $165.02, reflecting a +0.94% change from the previous day, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, Zoetis shares have declined by 7.48%, underperforming the Medical sector's loss of 5.77% and the S&P 500's loss of 2.8% [1] Upcoming Financial Results - Zoetis is set to announce its earnings on February 13, 2025, with an expected EPS of$ 1.38, indicating an 11.29% growth year-over-year [2] - Revenue is anticipated to reach $2.32 billion, reflecting a 4.98% increase compared to the same quarter last year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Zoetis are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] Zacks Rank and Stock Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows that 1 ranked stocks have yielded an average annual return of +25% since 1988 [5] - Currently, Zoetis holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate having decreased by 0.08% over the last 30 days [5] Valuation Metrics - Zoetis has a Forward P/E ratio of 25.63, which is a premium compared to the industry's average Forward P/E of 18.63 [6] - The company has a PEG ratio of 2.51, while the average PEG ratio for the Medical - Drugs industry is 1.81 [6] Industry Overview - The Medical - Drugs industry, part of the Medical sector, has a Zacks Industry Rank of 73, placing it in the top 30% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]