In the latest trading session, Johnson & Johnson (JNJ) closed at $152.43, marking a -0.54% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
The world's biggest maker of health care products's stock has dropped by 1.71% in the past month, exceeding the Medical sector's loss of 2.25% and lagging the S&P 500's gain of 7.37%.
The upcoming earnings release of Johnson & Johnson will be of great interest to investors. The company is predicted to post an EPS of $2.65, indicating a 6.03% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $22.77 billion, indicating a 1.42% upward movement from the same quarter last year.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.60 per share and revenue of $91.19 billion. These results would represent year-over-year changes of +6.21% and +2.66%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Johnson & Johnson is presently being traded at a Forward P/E ratio of 14.45. This indicates a premium in contrast to its industry's Forward P/E of 13.26.
Also, we should mention that JNJ has a PEG ratio of 2.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.23.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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