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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
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Johnson & Johnson (JNJ - Free Report) closed at $160.03 in the latest trading session, marking a +1.28% move from the prior day. This move outpaced the S&P 500's daily loss of 0.32%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 8.7% over the past month. This has lagged the Medical sector's gain of 2.04% and the S&P 500's loss of 0.12% 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 $2.58 per share, which would represent year-over-year growth of 1.18%. Our most recent consensus estimate is calling for quarterly revenue of $23.57 billion, down 0.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.21 per share and revenue of $84.58 billion, which would represent changes of +0.59% and -10.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 6.74% lower. Johnson & Johnson is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 15.47 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.12.
Also, we should mention that JNJ has a PEG ratio of 3.36. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.57 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 203, which puts it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
Johnson & Johnson (JNJ - Free Report) closed at $160.03 in the latest trading session, marking a +1.28% move from the prior day. This move outpaced the S&P 500's daily loss of 0.32%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 8.7% over the past month. This has lagged the Medical sector's gain of 2.04% and the S&P 500's loss of 0.12% 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 $2.58 per share, which would represent year-over-year growth of 1.18%. Our most recent consensus estimate is calling for quarterly revenue of $23.57 billion, down 0.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.21 per share and revenue of $84.58 billion, which would represent changes of +0.59% and -10.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 6.74% lower. Johnson & Johnson is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 15.47 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.12.
Also, we should mention that JNJ has a PEG ratio of 3.36. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.57 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 203, which puts it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.