Johnson & Johnson (JNJ) closed at $210.01 in the latest trading session, marking a +1.68% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.35%, while the tech-heavy Nasdaq depreciated by 0.26%.
Shares of the world's biggest maker of health care products have appreciated by 6.25% over the course of the past month, outperforming the Medical sector's gain of 3.7%, and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Johnson & Johnson in its upcoming release. The company's earnings per share (EPS) are projected to be $2.53, reflecting a 24.02% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $24.1 billion, reflecting a 7.01% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.87 per share and a revenue of $93.69 billion, representing changes of +8.92% and +5.49%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Johnson & Johnson. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 19.01 right now. Its industry sports an average Forward P/E of 13.74, so one might conclude that Johnson & Johnson is trading at a premium comparatively.
We can also see that JNJ currently has a PEG ratio of 2.3. 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. JNJ's industry had an average PEG ratio of 1.59 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 183, which puts it in the bottom 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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