Johnson & Johnson (JNJ) closed the most recent trading day at $149.83, moving -0.52% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.57% for the day. Meanwhile, the Dow lost 0.84%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Heading into today, shares of the world's biggest maker of health care products had lost 10.19% over the past month, outpacing the Medical sector's loss of 12.86% and the S&P 500's loss of 12.16% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Johnson & Johnson in its upcoming earnings disclosure. The company's earnings report is set to go public on April 15, 2025. The company's earnings per share (EPS) are projected to be $2.59, reflecting a 4.43% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $21.66 billion, indicating a 1.3% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.57 per share and revenue of $90.29 billion. These totals would mark changes of +5.91% and +1.65%, respectively, from last year.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Johnson & Johnson is currently being traded at a Forward P/E ratio of 14.25. This valuation marks a premium compared to its industry's average Forward P/E of 12.28.
We can additionally observe that JNJ currently boasts a PEG ratio of 2.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. JNJ's industry had an average PEG ratio of 1.17 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Johnson & Johnson (JNJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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