Zoetis shares gain 2.37% as investors await November 5 earnings

Zoetis (ZTS) closed its latest trading session up 2.37% at $74.81, outpacing the 0.6% gain of the S&P 500. The Dow Jones Industrial Average rose 0.83%, while the Nasdaq Composite added 0.64%.

Over the previous month, Zoetis shares gained 0.3%. This beat the Medical sector's 1.97% loss but trailed the S&P 500's 1.34% increase. Market participants are focused on the company's upcoming financial results, scheduled for release on November 5, 2026.

Analysts forecast Zoetis to report an earnings per share of $1.52 for the upcoming quarter. That represents a 10.59% decrease from the corresponding quarter of the prior year. The latest consensus estimate predicts revenue of $2.31 billion, a 3.66% decline compared to the same quarter last year.

For the full year, Zacks Consensus Estimates project earnings of $6.2 per share and revenue of $9.24 billion. These figures reflect changes of -3.28% and -2.45%, respectively, from the preceding year.

Recent adjustments to analyst estimates often reflect near-term business trends. Positive revisions are typically viewed as a favorable sign for the business outlook. The Zacks Rank, a proprietary model integrating these estimate changes, provides a rating system ranging from #1 (Strong Buy) to #5 (Strong Sell). Externally audited data shows that #1 ranked stocks have yielded an average annual return of +25% since 1988.

Currently, Zoetis holds a Zacks Rank of #4 (Sell). There has been no change in the Zacks Consensus EPS estimate over the past month. In terms of valuation, the company has a Forward P/E ratio of 11.78, representing a discount to its industry's average Forward P/E of 16.14.

Zoetis also carries a PEG ratio of 1.7. This metric factors in expected earnings growth alongside price. As of yesterday's close, the Medical - Drugs industry had an average PEG ratio of 1.69.

The Medical - Drugs industry is part of the broader Medical sector and currently holds a Zacks Industry Rank of 190. This places it within the bottom 23% of over 250 industries tracked by Zacks. The Zacks Industry Rank measures group strength by calculating the average Zacks Rank of individual stocks within those groups. Research indicates that top-rated industries outperform the bottom half by a factor of 2 to 1.