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Johnson & Johnson (JNJ) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $160.48, marking a -0.74% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the world's biggest maker of health care products had lost 5.25% over the past month, lagging the Medical sector's loss of 0.91% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release. The company is expected to report EPS of $2.63, up 3.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.9 billion, up 4.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.61 per share and revenue of $98.77 billion, which would represent changes of +4.53% and +4.03%, respectively, from the prior 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 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. 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 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 has moved 6.55% lower within the past month. Johnson & Johnson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 15.23 right now. For comparison, its industry has an average Forward P/E of 14.73, which means Johnson & Johnson is trading at a premium to the group.
It is also worth noting that JNJ currently has a PEG ratio of 3.31. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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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Johnson & Johnson (JNJ) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $160.48, marking a -0.74% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the world's biggest maker of health care products had lost 5.25% over the past month, lagging the Medical sector's loss of 0.91% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release. The company is expected to report EPS of $2.63, up 3.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.9 billion, up 4.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.61 per share and revenue of $98.77 billion, which would represent changes of +4.53% and +4.03%, respectively, from the prior 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 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. 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 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 has moved 6.55% lower within the past month. Johnson & Johnson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 15.23 right now. For comparison, its industry has an average Forward P/E of 14.73, which means Johnson & Johnson is trading at a premium to the group.
It is also worth noting that JNJ currently has a PEG ratio of 3.31. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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.