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Johnson & Johnson (JNJ) Stock Sinks As Market Gains: What You Should Know

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Johnson & Johnson (JNJ) closed the most recent trading day at $169.46, moving -0.36% from the previous trading session. This move lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.

Coming into today, shares of the world's biggest maker of health care products had lost 4.25% in the past month. In that same time, the Medical sector lost 5.2%, while the S&P 500 lost 10.02%.

Johnson & Johnson will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2022. On that day, Johnson & Johnson is projected to report earnings of $2.59 per share, which would represent year-over-year growth of 4.44%. Meanwhile, our latest consensus estimate is calling for revenue of $23.99 billion, up 2.93% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.23 per share and revenue of $96.62 billion, which would represent changes of +4.39% and +3.04%, respectively, from the prior year.

Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Johnson & Johnson is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 16.56 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.48.

Also, we should mention that JNJ has a PEG ratio of 3.35. 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 2.05 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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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