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Johnson & Johnson (JNJ) closed at $177.71 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq added 0.24%.
Heading into today, shares of the world's biggest maker of health care products had gained 0.7% over the past month, outpacing the Medical sector's gain of 0.21% and the S&P 500's gain of 0.32% in that time.
Wall Street will be looking for positivity from Johnson & Johnson as it approaches its next earnings report date. On that day, Johnson & Johnson is projected to report earnings of $2.59 per share, which would represent year-over-year growth of 4.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.99 billion, up 2.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.23 per share and revenue of $96.62 billion. These totals would mark changes of +4.39% and +3.04%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 17.54. This represents a premium compared to its industry's average Forward P/E of 13.35.
Also, we should mention that JNJ has a PEG ratio of 3.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JNJ's industry had an average PEG ratio of 2.24 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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