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Johnson & Johnson (JNJ) Stock Dips While Market Gains: Key Facts

Johnson & Johnson (JNJ) ended the recent trading session at $146.76, demonstrating a -0.25% swing from the preceding day's closing price. This change lagged the S&P 500's 0.27% gain on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.88%.

Shares of the world's biggest maker of health care products have depreciated by 2.7% over the course of the past month, underperforming the Medical sector's gain of 2.89% and the S&P 500's gain of 2.85%.

The upcoming earnings release of Johnson & Johnson will be of great interest to investors. The company's earnings report is expected on July 17, 2024. The company is forecasted to report an EPS of $2.73, showcasing a 2.5% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $22.38 billion, down 12.32% from the year-ago period.

JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.63 per share and revenue of $88.38 billion. These results would represent year-over-year changes of +7.16% and -4.99%, respectively.

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Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Johnson & Johnson is currently being traded at a Forward P/E ratio of 13.84. This denotes a discount relative to the industry's average Forward P/E of 14.5.

It's also important to note that JNJ currently trades at a PEG ratio of 2.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.77.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 40% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Johnson & Johnson (JNJ) : Free Stock Analysis Report

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