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Zoetis (ZTS) Stock Sinks As Market Gains: Here's Why
ZoetisZoetis(US:ZTS) ZACKSยท2025-09-09 23:16

Company Performance - Zoetis (ZTS) closed at $149.79, down 1.29% from the previous session, underperforming the S&P 500's gain of 0.27% [1] - Over the last month, Zoetis shares increased by 1.83%, lagging behind the Medical sector's gain of 6.54% and the S&P 500's gain of 1.85% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $1.64, reflecting a 3.8% increase year-over-year [2] - Revenue is anticipated to be $2.43 billion, indicating a 1.56% growth compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $6.34 per share and revenue at $9.51 billion, representing increases of 7.09% and 2.79% respectively from the prior year [3] - Recent analyst estimate revisions are seen as positive indicators for the business outlook [3][4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Zoetis at 3 (Hold) [5] - The Zacks Consensus EPS estimate has increased by 0.08% over the past month [5] Valuation Metrics - Zoetis is trading at a Forward P/E ratio of 23.94, which is a premium compared to the industry average of 15.52 [6] - The PEG ratio for Zoetis stands at 2.44, while the average PEG ratio for the Medical - Drugs industry is 1.55 [6] Industry Context - The Medical - Drugs industry has a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]