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Johnson & Johnson (JNJ) Increases Despite Market Slip: Here's What You Need to Know

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Johnson & Johnson (JNJ - Free Report) closed the latest trading day at $167.16, indicating a +0.78% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 2.12% for the day. Elsewhere, the Dow saw a downswing of 1.51%, while the tech-heavy Nasdaq depreciated by 3.26%.

Shares of the world's biggest maker of health care products witnessed a gain of 2.86% over the previous month, trailing the performance of the Medical sector with its gain of 5.45% and the S&P 500's gain of 5.78%.

Analysts and investors alike will be keeping a close eye on the performance of Johnson & Johnson in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.19, marking a 17.67% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $22.17 billion, up 3.85% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.02 per share and revenue of $88.51 billion, indicating changes of +1.01% and -4.85%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% lower. As of now, Johnson & Johnson holds a Zacks Rank of #4 (Sell).

From a valuation perspective, Johnson & Johnson is currently exchanging hands at a Forward P/E ratio of 16.56. This indicates a premium in contrast to its industry's Forward P/E of 16.36.

It's also important to note that JNJ currently trades at a PEG ratio of 2.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.71 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 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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