Johnson & Johnson (JNJ) closed at $143.68 in the latest trading session, marking a -0.67% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 0.17%.
Heading into today, shares of the world's biggest maker of health care products had lost 3.24% over the past month, outpacing the Medical sector's loss of 4.16% and the S&P 500's loss of 4.88% in that time.
Investors will be hoping for strength from JNJ as it approaches its next earnings release. The company is expected to report EPS of $2.18, up 3.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.48 billion, up 2.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.03 per share and revenue of $85.90 billion, which would represent changes of +4.03% and +4.68%, respectively, from the prior year.
Any recent changes to analyst estimates for JNJ should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. JNJ is currently a Zacks Rank #3 (Hold).
Investors should also note JNJ's current valuation metrics, including its Forward P/E ratio of 16.03. This represents a premium compared to its industry's average Forward P/E of 14.71.
It is also worth noting that JNJ currently has a PEG ratio of 2.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.
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