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Johnson & Johnson (JNJ) Gains But Lags Market: What You Should Know
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Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $160.50, moving +0.29% from the previous trading session. This change lagged the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.23%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 3.44% over the past month. This has lagged the Medical sector's loss of 2.6% and the S&P 500's gain of 0.18% in that time.
JNJ will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2021. On that day, JNJ is projected to report earnings of $2.30 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.79 billion, up 5.32% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.48 per share and revenue of $91.31 billion, which would represent changes of +18.06% and +10.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for JNJ. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. JNJ is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 16.88. This represents a premium compared to its industry's average Forward P/E of 13.36.
It is also worth noting that JNJ currently has a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Johnson & Johnson (JNJ) Gains But Lags Market: What You Should Know
Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $160.50, moving +0.29% from the previous trading session. This change lagged the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.23%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 3.44% over the past month. This has lagged the Medical sector's loss of 2.6% and the S&P 500's gain of 0.18% in that time.
JNJ will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2021. On that day, JNJ is projected to report earnings of $2.30 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.79 billion, up 5.32% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.48 per share and revenue of $91.31 billion, which would represent changes of +18.06% and +10.56%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for JNJ. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. JNJ is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 16.88. This represents a premium compared to its industry's average Forward P/E of 13.36.
It is also worth noting that JNJ currently has a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.