Johnson & Johnson (JNJ) Rises As Market Takes a Dip: Key Facts

In the latest close session, Johnson & Johnson (JNJ) was up +2.01% at $271.19. This change outpaced the S&P 500's 0.71% loss on the day. Meanwhile, the Dow lost 0.79%, and the Nasdaq, a tech-heavy index, lost 1.03%.

Shares of the world's biggest maker of health care products have appreciated by 4.5% over the course of the past month, outperforming the Medical sector's gain of 4.16%, and the S&P 500's gain of 2.72%.

The investment community will be paying close attention to the earnings performance of Johnson & Johnson in its upcoming release. The company is slated to reveal its earnings on October 13, 2026. The company's earnings per share (EPS) are projected to be $2.95, reflecting a 5.36% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $25.36 billion, indicating a 5.71% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.59 per share and a revenue of $101.09 billion, signifying shifts of +7.41% and +7.32%, respectively, from the last year.

Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% lower. Currently, Johnson & Johnson is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Johnson & Johnson is at present trading with a Forward P/E ratio of 22.94. This denotes a premium relative to the industry average Forward P/E of 17.2.

It's also important to note that JNJ currently trades at a PEG ratio of 2.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 2.61.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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