Zoetis (ZTS) Laps the Stock Market: Here's Why

Company Performance - Zoetis (ZTS) closed at $170.37, reflecting a +1.87% increase from the previous day, outperforming the S&P 500's gain of 0.55% [1] - Over the last month, Zoetis shares decreased by 3.95%, underperforming the Medical sector's gain of 0.52% and the S&P 500's loss of 5.56% [1] Upcoming Financial Results - Zoetis is expected to report an EPS of$ 1.41, representing a 2.17% increase from the prior-year quarter, with anticipated revenue of $2.2 billion, indicating a 0.47% increase from the same quarter last year [2] Annual Estimates - For the annual period, earnings are projected at$ 6.12 per share and revenue at $9.31 billion, reflecting increases of +3.38% and +0.59% respectively from the previous year [3] Analyst Projections - Recent shifts in analyst projections for Zoetis should be monitored, as positive revisions indicate optimism about the company's business and profitability [3] Zacks Rank and Performance - The Zacks Rank system, which incorporates estimate changes, currently ranks Zoetis at 3 (Hold), with a recent downward shift of 3.83% in the consensus EPS estimate [5] - Historically, 1 ranked stocks in the Zacks Rank system have returned an average of +25% annually since 1988 [5] Valuation Metrics - Zoetis has a Forward P/E ratio of 27.35, which is a premium compared to the industry average of 19.2 [6] - The company also has a PEG ratio of 2.93, while the Medical - Drugs industry has an average PEG ratio of 1.06 [7] Industry Context - The Medical - Drugs industry, part of the Medical sector, holds a Zacks Industry Rank of 133, placing it in the bottom 48% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]