Johnson & Johnson (JNJ) closed at $270.27 in the latest trading session, marking a -1.05% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq lost 0.08%.
The stock of world's biggest maker of health care products has risen by 2.4% in the past month, lagging the Medical sector's gain of 7.23% and the S&P 500's gain of 3.67%.
The upcoming earnings release of Johnson & Johnson will be of great interest to investors. It is anticipated that the company will report an EPS of $2.95, marking a 5.36% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $25.36 billion, showing a 5.71% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.59 per share and a revenue of $101.09 billion, indicating changes of +7.41% and +7.32%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 0.56% downward. As of now, Johnson & Johnson holds a Zacks Rank of #3 (Hold).
Digging into valuation, Johnson & Johnson currently has a Forward P/E ratio of 23.56. This denotes a premium relative to the industry average Forward P/E of 18.08.
It's also important to note that JNJ currently trades at a PEG ratio of 2.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.74 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 105, finds itself in the top 43% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Johnson & Johnson (JNJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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