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In the latest trading session, Johnson & Johnson (JNJ) closed at $157.40, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.54% loss on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq lost 2.41%.
Heading into today, shares of the world's biggest maker of health care products had lost 3.64% over the past month, outpacing the Medical sector's loss of 5.8% and lagging the S&P 500's loss of 1.04% in that time.
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 $2.30 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.79 billion, up 5.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.48 per share and revenue of $91.31 billion, which would represent changes of +18.06% and +10.56%, respectively, from the prior year.
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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JNJ is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that JNJ has a Forward P/E ratio of 16.46 right now. This represents a premium compared to its industry's average Forward P/E of 12.79.
Meanwhile, JNJ's PEG ratio is currently 2.13. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Johnson & Johnson (JNJ) : Free Stock Analysis Report
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