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Johnson & Johnson (JNJ) Stock Dips While Market Gains: Key Facts

By Zacks Equity Research | September 18, 2025, 5:45 PM

Johnson & Johnson (JNJ) closed at $174.16 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's 0.48% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.

Shares of the world's biggest maker of health care products have depreciated by 0.92% over the course of the past month, underperforming the Medical sector's gain of 1.09%, and the S&P 500's gain of 2.46%.

Market participants will be closely following the financial results of Johnson & Johnson in its upcoming release. The company plans to announce its earnings on October 14, 2025. In that report, analysts expect Johnson & Johnson to post earnings of $2.78 per share. This would mark year-over-year growth of 14.88%. Meanwhile, the latest consensus estimate predicts the revenue to be $23.74 billion, indicating a 5.63% increase compared to the same quarter of the previous 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.

Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 16.32 right now. This valuation marks a premium compared to its industry average Forward P/E of 14.14.

We can also see that JNJ currently has a PEG ratio of 2.26. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.52 at the close of the market yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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