Yahoo Finance Johnson & Johnson (JNJ) Stock Sinks As Market Gains: What You Should Know
Johnson & Johnson (JNJ) closed at $163.93 in the latest trading session, marking a -0.36% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day.
Heading into today, shares of the world's biggest maker of health care products had lost 6.19% over the past month, lagging the Medical sector's loss of 1.9% and the S&P 500's loss of 1.87% 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.68 billion, up 12.31% from the year-ago period.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $9.65 per share and revenue of $94.34 billion. These results would represent year-over-year changes of +20.17% and +14.23%, respectively.
Investors should also note any recent changes to analyst estimates for JNJ. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JNJ is currently a Zacks Rank #2 (Buy).
In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 17.05. This represents a premium compared to its industry's average Forward P/E of 13.14.
We can also see that JNJ currently has a PEG ratio of 2.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
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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