Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
Johnson & Johnson (JNJ) closed the most recent trading day at $161.64, moving +0.24% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%.
Coming into today, shares of the world's biggest maker of health care products had gained 1.33% in the past month. In that same time, the Medical sector lost 1.93%, while the S&P 500 gained 6.61%.
Investors will be hoping for strength from JNJ as it approaches its next earnings release, which is expected to be April 20, 2021. On that day, JNJ is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 0.43%. Meanwhile, our latest consensus estimate is calling for revenue of $21.82 billion, up 5.45% from the prior-year quarter.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $9.48 per share and revenue of $91.25 billion. These results would represent year-over-year changes of +18.06% and +10.49%, respectively.
Investors might also notice recent changes to analyst estimates for JNJ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. JNJ currently has a Zacks Rank of #3 (Hold).
In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 17.01. For comparison, its industry has an average Forward P/E of 13.63, which means JNJ is trading at a premium to the group.
It is also worth noting that JNJ currently has a PEG ratio of 2.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. JNJ's industry had an average PEG ratio of 1.88 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 232, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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