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Johnson & Johnson (JNJ) Soars 4.5%: Is Further Upside Left in the Stock?
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Johnson & Johnson (JNJ - Free Report) shares ended the last trading session 4.5% higher at $165.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.9% gain over the past four weeks.
Share price rose after management announced that J&J’s subsidiary LTL Management revised the settlement amount for talc litigations to $8.9 billion, payable over a 25-year period. This amount was more than 4 times the previously announced $2.0 billion J&J had previously committed alongside subsidiary LTL Management’s first bankruptcy filing in October 2021. J&J established LTL Management to manage claims in the cosmetic talc litigation. However, J&J still maintains its stance that its talc-based products are safe and the talc lawsuits lack merit.
This world's biggest maker of health care products is expected to post quarterly earnings of $2.50 per share in its upcoming report, which represents a year-over-year change of -6.4%. Revenues are expected to be $23.56 billion, up 0.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Johnson & Johnson, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on JNJ going forward to see if this recent jump can turn into more strength down the road.
Johnson & Johnson belongs to the Zacks Large Cap Pharmaceuticals industry. Another stock from the same industry, AbbVie (ABBV - Free Report) , closed the last trading session 0.6% higher at $160.80. Over the past month, ABBV has returned 4.5%.
AbbVie's consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $2.49. Compared to the company's year-ago EPS, this represents a change of -21.2%. AbbVie currently boasts a Zacks Rank of #3 (Hold).
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Johnson & Johnson (JNJ) Soars 4.5%: Is Further Upside Left in the Stock?
Johnson & Johnson (JNJ - Free Report) shares ended the last trading session 4.5% higher at $165.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.9% gain over the past four weeks.
Share price rose after management announced that J&J’s subsidiary LTL Management revised the settlement amount for talc litigations to $8.9 billion, payable over a 25-year period. This amount was more than 4 times the previously announced $2.0 billion J&J had previously committed alongside subsidiary LTL Management’s first bankruptcy filing in October 2021. J&J established LTL Management to manage claims in the cosmetic talc litigation. However, J&J still maintains its stance that its talc-based products are safe and the talc lawsuits lack merit.
This world's biggest maker of health care products is expected to post quarterly earnings of $2.50 per share in its upcoming report, which represents a year-over-year change of -6.4%. Revenues are expected to be $23.56 billion, up 0.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Johnson & Johnson, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on JNJ going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Johnson & Johnson belongs to the Zacks Large Cap Pharmaceuticals industry. Another stock from the same industry, AbbVie (ABBV - Free Report) , closed the last trading session 0.6% higher at $160.80. Over the past month, ABBV has returned 4.5%.
AbbVie's consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $2.49. Compared to the company's year-ago EPS, this represents a change of -21.2%. AbbVie currently boasts a Zacks Rank of #3 (Hold).