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Johnson & Johnson (JNJ) closed at $170.96 in the latest trading session, marking a -0.06% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.08%.
Heading into today, shares of the world's biggest maker of health care products had gained 3.57% over the past month, outpacing the Medical sector's gain of 0.93% and the S&P 500's gain of 0.73% in that time.
JNJ will be looking to display strength as it nears its next earnings release. In that report, analysts expect JNJ to post earnings of $2.27 per share. This would mark year-over-year growth of 35.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.27 billion, up 21.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.52 per share and revenue of $91.42 billion, which would represent changes of +18.56% and +10.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for JNJ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. JNJ is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 17.97. Its industry sports an average Forward P/E of 14.24, so we one might conclude that JNJ is trading at a premium comparatively.
We can also see that JNJ currently has a PEG ratio of 2.75. 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 2.07 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% 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.
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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