Johnson & Johnson (JNJ) closed at $239.63 in the latest trading session, marking a -2.31% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.57%. Elsewhere, the Dow lost 1.61%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the world's biggest maker of health care products had gained 4.62% over the past month, outpacing the Medical sector's gain of 0.06% and the S&P 500's loss of 0.15%.
The upcoming earnings release of Johnson & Johnson will be of great interest to investors. On that day, Johnson & Johnson is projected to report earnings of $2.68 per share, which would represent a year-over-year decline of 3.25%. Meanwhile, our latest consensus estimate is calling for revenue of $23.43 billion, up 7.04% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.54 per share and revenue of $100.29 billion. These totals would mark changes of +6.95% and +6.47%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Right now, Johnson & Johnson possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 21.26. This represents a premium compared to its industry average Forward P/E of 16.25.
One should further note that JNJ currently holds a PEG ratio of 2.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.31 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 32% 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.
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Johnson & Johnson (JNJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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