Does Earnings Surprise History Hold Any Clue for Zoetis (NYSE:ZTS)

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Earnings results for Zoetis (NYSE:ZTS)

Zoetis Inc. is expected* to report earnings on 11/05/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 9 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.89. The reported EPS for the same quarter last year was $0.94.

Zoetis last posted its earnings results on August 6th, 2020. The reported $0.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.64 by $0.25. The company had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.35 billion. Its revenue was up .1% compared to the same quarter last year. Zoetis has generated $3.64 earnings per share over the last year and currently has a price-to-earnings ratio of 51.7. Zoetis has confirmed that its next quarterly earnings report will be published on Thursday, November 5th, 2020.

Analyst Opinion on Zoetis (NYSE:ZTS)

18 Wall Street analysts have issued ratings and price targets for Zoetis in the last 12 months. Their average twelve-month price target is $156.15, predicting that the stock has a possible downside of 10.44%. The high price target for ZTS is $191.00 and the low price target for ZTS is $126.00. There are currently 9 hold ratings, 8 buy ratings and 1 strong buy rating for the stock, resulting in a consensus rating of “Buy.”

Zoetis has received a consensus rating of Buy. The company’s average rating score is 2.56, and is based on 8 buy ratings, 9 hold ratings, and no sell ratings. According to analysts’ consensus price target of $156.15, Zoetis has a forecasted downside of 10.4% from its current price of $174.35. Zoetis has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Zoetis (NYSE:ZTS)

Zoetis has a dividend yield of 0.49%, which is in the bottom 25% of all stocks that pay dividends. Zoetis has only been increasing its dividend for 1 years. The dividend payout ratio of Zoetis is 21.98%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Zoetis will have a dividend payout ratio of 19.42% next year. This indicates that Zoetis will be able to sustain or increase its dividend.

Insiders buying/selling: Zoetis (NYSE:ZTS)

In the past three months, Zoetis insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $5,730,947.00 in company stock. Only 0.17% of the stock of Zoetis is held by insiders. 92.50% of the stock of Zoetis is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Zoetis (NYSE:ZTS

Earnings for Zoetis are expected to grow by 13.50% in the coming year, from $3.63 to $4.12 per share. The P/E ratio of Zoetis is 51.74, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.26. The P/E ratio of Zoetis is 51.74, which means that it is trading at a more expensive P/E ratio than the Medical sector average P/E ratio of about 28.56. Zoetis has a PEG Ratio of 4.35. PEG Ratios above 1 indicate that a company could be overvalued. Zoetis has a P/B Ratio of 30.64. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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