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Johnson & Johnson (JNJ) Stock Moves -0.35%: What You Should Know

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Johnson & Johnson (JNJ - Free Report) closed at $162.43 in the latest trading session, marking a -0.35% move from the prior day. This change was narrower than the S&P 500's 1.1% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the world's biggest maker of health care products had lost 6.27% over the past month. This has lagged the Medical sector's loss of 4.62% and the S&P 500's loss of 2.28% in that time.

Wall Street will be looking for positivity from Johnson & Johnson as it approaches its next earnings report date. On that day, Johnson & Johnson is projected to report earnings of $2.57 per share, which would represent a year-over-year decline of 1.15%. Our most recent consensus estimate is calling for quarterly revenue of $23.55 billion, up 0.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.05 per share and revenue of $95.11 billion, which would represent changes of +2.55% and +1.43%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 16.22. This valuation marks a premium compared to its industry's average Forward P/E of 12.77.

Investors should also note that JNJ has a PEG ratio of 3.1 right now. 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. JNJ's industry had an average PEG ratio of 1.91 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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