Johnson & Johnson (JNJ) closed the most recent trading day at $142.85, moving -0.09% from the previous trading session. This change was narrower than the S&P 500's 1.08% loss on the day. At the same time, the Dow lost 1.51%, and the tech-heavy Nasdaq lost 0.86%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 2.58% over the past month. This has lagged the Medical sector's loss of 0.35% and the S&P 500's loss of 0.3% in that time.
Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. This is expected to be July 16, 2020. The company is expected to report EPS of $1.45, down 43.8% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.33 billion, down 15.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.68 per share and revenue of $79.48 billion. These totals would mark changes of -11.52% and -3.14%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JNJ is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, JNJ is holding a Forward P/E ratio of 18.63. This represents a premium compared to its industry's average Forward P/E of 15.71.
Meanwhile, JNJ's PEG ratio is currently 3.12. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.17 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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