Yahoo Finance Johnson & Johnson (JNJ) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Johnson & Johnson (JNJ) ending at $149.43, denoting a +1.62% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 1.02%. Elsewhere, the Dow saw an upswing of 1.09%, while the tech-heavy Nasdaq appreciated by 1.18%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 0.2% over the past month. This has outpaced the Medical sector's loss of 1.82% and lagged the S&P 500's gain of 4.44% in that time.
Market participants will be closely following the financial results of Johnson & Johnson in its upcoming release. The company plans to announce its earnings on July 17, 2024. In that report, analysts expect Johnson & Johnson to post earnings of $2.73 per share. This would mark a year-over-year decline of 2.5%. Meanwhile, our latest consensus estimate is calling for revenue of $22.38 billion, down 12.32% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.62 per share and revenue of $88.38 billion, indicating changes of +7.06% and -4.99%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Johnson & Johnson. Such recent modifications usually signify the changing landscape of near-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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. 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 13.84. This represents a discount compared to its industry's average Forward P/E of 14.74.
It's also important to note that JNJ currently trades at a PEG ratio of 2.45. 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 1.86 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Johnson & Johnson (JNJ) : Free Stock Analysis Report
