Johnson & Johnson (JNJ) closed the most recent trading day at $178.41, moving +1.49% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.85%. On the other hand, the Dow registered a gain of 1.36%, and the technology-centric Nasdaq increased by 0.72%.
Shares of the world's biggest maker of health care products have appreciated by 0.79% over the course of the past month, underperforming the Medical sector's gain of 6.01%, and the S&P 500's gain of 2.38%.
The investment community will be closely monitoring the performance of Johnson & Johnson in its forthcoming earnings report. The company is scheduled to release its earnings on October 14, 2025. The company is predicted to post an EPS of $2.78, indicating a 14.88% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $23.74 billion, reflecting a 5.63% rise from the equivalent quarter last year.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.86 per share and revenue of $93.41 billion. These results would represent year-over-year changes of +8.82% and +5.17%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Johnson & Johnson holds a Zacks Rank of #2 (Buy).
In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 16.19. This indicates a premium in contrast to its industry's Forward P/E of 14.14.
One should further note that JNJ currently holds a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.57.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Johnson & Johnson (JNJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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