In the latest trading session, Johnson & Johnson (JNJ) closed at $142.01, marking a -1.02% move from the previous day. This change was narrower than the S&P 500's daily loss of 3.39%. Meanwhile, the Dow lost 3.58%, and the Nasdaq, a tech-heavy index, lost 3.1%.
Heading into today, shares of the world's biggest maker of health care products had lost 6.83% over the past month, lagging the Medical sector's loss of 1.65% and the S&P 500's loss of 4.8% in that time.
Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. The company is expected to report EPS of $2.18, up 3.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.48 billion, up 2.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.03 per share and revenue of $85.90 billion, which would represent changes of +4.03% and +4.68%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for JNJ. Recent revisions tend to reflect the latest near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. JNJ is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note JNJ's current valuation metrics, including its Forward P/E ratio of 15.89. This represents a premium compared to its industry's average Forward P/E of 14.9.
It is also worth noting that JNJ currently has a PEG ratio of 2.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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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