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Johnson & Johnson (JNJ) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest trading session, Johnson & Johnson (JNJ) closed at $146.97, marking a -1.82% move from the previous day. This move lagged the S&P 500's daily gain of 0.7%. On the other hand, the Dow registered a gain of 0.01%, and the technology-centric Nasdaq increased by 1.1%.

The the stock of world's biggest maker of health care products has risen by 1.96% in the past month, lagging the Medical sector's gain of 3.27% and the S&P 500's gain of 4.03%.

Market participants will be closely following the financial results of Johnson & Johnson in its upcoming release. The company is expected to report EPS of $2.73, down 2.5% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $22.37 billion, reflecting a 12.38% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.64 per share and revenue of $88.28 billion, which would represent changes of +7.26% and -5.1%, respectively, from the prior year.

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It's also important for investors to be aware of any recent modifications to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Right now, Johnson & Johnson possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 14.07. This represents a premium compared to its industry's average Forward P/E of 14.06.

It is also worth noting that JNJ currently has a PEG ratio of 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.62.

The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 40% of all industries, numbering over 250.

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.

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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Zacks Investment Research