Johnson & Johnson (JNJ) closed the most recent trading day at $158.32, moving +0.86% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Heading into today, shares of the world's biggest maker of health care products had lost 3.51% over the past month, lagging the Medical sector's loss of 1.59% and the S&P 500's gain of 4.14% 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 $2.62 per share, which would represent year-over-year growth of 1.16%. Our most recent consensus estimate is calling for quarterly revenue of $24.66 billion, up 2.68% from the year-ago period.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.66 per share and revenue of $98.86 billion. These results would represent year-over-year changes of +5.02% and +4.12%, respectively.
Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Johnson & Johnson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 14.72 right now. For comparison, its industry has an average Forward P/E of 14.82, which means Johnson & Johnson is trading at a discount to the group.
Investors should also note that JNJ has a PEG ratio of 2.68 right now. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.67 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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