Yahoo Finance Johnson & Johnson (JNJ) Stock Moves -0.22%: What You Should Know
In the latest trading session, Johnson & Johnson (JNJ) closed at $162.81, marking a -0.22% move from the previous day. This change was narrower than the S&P 500's 2.04% loss on the day.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 6.04% over the past month. This has lagged the Medical sector's loss of 2.97% and the S&P 500's loss of 1.36% in that time.
Investors will be hoping for strength from JNJ as it approaches its next earnings release, which is expected to be October 19, 2021. The company is expected to report EPS of $2.38, up 8.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.68 billion, up 12.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.65 per share and revenue of $94.34 billion. These totals would mark changes of +20.17% and +14.23%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JNJ is currently a Zacks Rank #2 (Buy).
Digging into valuation, JNJ currently has a Forward P/E ratio of 16.91. Its industry sports an average Forward P/E of 13.22, so we one might conclude that JNJ is trading at a premium comparatively.
Investors should also note that JNJ has a PEG ratio of 2.18 right now. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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