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Johnson & Johnson (JNJ) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Johnson & Johnson (JNJ - Free Report) ending at $152.11, denoting a +0.32% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.16%.

The world's biggest maker of health care products's shares have seen an increase of 2.22% over the last month, not keeping up with the Medical sector's gain of 5.76% and the S&P 500's gain of 10.77%.

Analysts and investors alike will be keeping a close eye on the performance of Johnson & Johnson in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.47, indicating a 5.11% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $20.92 billion, reflecting a 11.76% fall from the equivalent quarter last year.

JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.10 per share and revenue of $84.68 billion. These results would represent year-over-year changes of -0.49% and -10.81%, respectively.

It is also important to note the recent changes to analyst estimates for Johnson & Johnson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Right now, Johnson & Johnson possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 15.01 right now. This expresses no noticeable deviation compared to the average Forward P/E of 15.01 of its industry.

One should further note that JNJ currently holds a PEG ratio of 3.06. 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. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 2.07 at the close of the market yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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