In the latest trading session, Johnson & Johnson (JNJ) closed at $131.55, marking a -0.14% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 1.47%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 3.08% over the past month. This has outpaced the Medical sector's gain of 2.64% and lagged the S&P 500's gain of 5.2% in that time.
Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. This is expected to be October 15, 2019. The company is expected to report EPS of $2, down 2.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.05 billion, down 1.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.60 per share and revenue of $81.51 billion. These totals would mark changes of +5.13% and -0.09%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for JNJ. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. JNJ currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, JNJ is holding a Forward P/E ratio of 15.32. For comparison, its industry has an average Forward P/E of 14.26, which means JNJ is trading at a premium to the group.
Investors should also note that JNJ has a PEG ratio of 2.23 right now. 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 2.03 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.
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