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Johnson & Johnson (JNJ) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $155.56, marking a +1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the world's biggest maker of health care products had lost 6.43% over the past month, lagging the Medical sector's loss of 1.96% and the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release. On that day, Johnson & Johnson is projected to report earnings of $2.51 per share, which would represent a year-over-year decline of 5.99%. Our most recent consensus estimate is calling for quarterly revenue of $23.59 billion, up 0.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.50 per share and revenue of $97.73 billion, which would represent changes of +3.45% and +2.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Johnson & Johnson's current valuation metrics, including its Forward P/E ratio of 14.67. This valuation marks a premium compared to its industry's average Forward P/E of 14.08.
We can also see that JNJ currently has a PEG ratio of 2.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JNJ's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $155.56, marking a +1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.07%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the world's biggest maker of health care products had lost 6.43% over the past month, lagging the Medical sector's loss of 1.96% and the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release. On that day, Johnson & Johnson is projected to report earnings of $2.51 per share, which would represent a year-over-year decline of 5.99%. Our most recent consensus estimate is calling for quarterly revenue of $23.59 billion, up 0.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.50 per share and revenue of $97.73 billion, which would represent changes of +3.45% and +2.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Johnson & Johnson's current valuation metrics, including its Forward P/E ratio of 14.67. This valuation marks a premium compared to its industry's average Forward P/E of 14.08.
We can also see that JNJ currently has a PEG ratio of 2.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JNJ's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.