In the latest close session, Johnson & Johnson (JNJ) was down 1.2% at $155.22. The stock fell short of the S&P 500, which registered a gain of 0.94% for the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Shares of the world's biggest maker of health care products witnessed a gain of 3.81% over the previous month, trailing the performance of the Medical sector with its gain of 4.95%, and outperforming the S&P 500's gain of 1.67%.
Market participants will be closely following the financial results of Johnson & Johnson in its upcoming release. The company plans to announce its earnings on July 16, 2025. The company is expected to report EPS of $2.65, down 6.03% from the prior-year quarter. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.6 per share and a revenue of $91.19 billion, representing changes of +6.21% and +2.66%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Johnson & Johnson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Johnson & Johnson possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Johnson & Johnson is currently being traded at a Forward P/E ratio of 14.82. For comparison, its industry has an average Forward P/E of 13.93, which means Johnson & Johnson is trading at a premium to the group.
We can additionally observe that JNJ currently boasts a PEG ratio of 2.38. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 36, finds itself in the top 15% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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