In the latest close session, Johnson & Johnson (JNJ) was up +2.08% at $155.92. The stock exceeded the S&P 500, which registered a loss of 0.11% for the day. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw a decrease of 0.82%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 1.71% lagged the Medical sector's gain of 1.66% and the S&P 500's gain of 5.17%.
The investment community will be closely monitoring the performance of Johnson & Johnson in its forthcoming earnings report. The company is scheduled to release its earnings on July 16, 2025. The company's earnings per share (EPS) are projected to be $2.65, reflecting a 6.03% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.77 billion, up 1.42% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.6 per share and revenue of $91.19 billion. These totals would mark changes of +6.21% and +2.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Johnson & Johnson presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Johnson & Johnson is at present trading with a Forward P/E ratio of 14.41. For comparison, its industry has an average Forward P/E of 13.9, which means Johnson & Johnson is trading at a premium to the group.
We can additionally observe that JNJ currently boasts a PEG ratio of 2.31. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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