Back to top

Image: Bigstock

Your Two Minute Earnings Preview for Johnson and Johnson (JNJ) Stock

Read MoreHide Full Article

Today’s quick video takes a closer look at Johnson and Johnson (JNJ - Free Report) stock ahead of their earnings report. This company has seen its share price fall over the past three months, after posting nice returns in the first two quarters of 2016. Investors will need to see good news in the upcoming report to turn the negative trend around.

One positive aspect for JNJ is that they have shown an excellent track record during earnings season. In fact, the company has met or exceeded expectations every quarter since 2011. This is a trend that seems likely to continue, as JNJ clearly can manage analyst expectations with ease.

JOHNSON & JOHNS Price and EPS Surprise

JOHNSON & JOHNS Price and EPS Surprise | JOHNSON & JOHNS Quote

Still, it should be noted that JNJ has been exhibiting some risks for investors. This is evident when investors look to JNJ’s VGM score, which is currently a D. Part of this low rating is due to its weak earnings yield compared to the industry. As of today, JNJ is 0.44% below the industry average for earnings yield (5.64% vs 6.11%). Overall, growth has been pretty lackluster, and that can help to explain why JNJ has a Growth Score of ‘D’ as well.

However, the positive track record of meeting expectations, combined with a current positive Earnings ESP of 4.24%, gives investors hope for a turnaround. A current Zacks Rank of #3 (hold) makes sense due to this pertinent information, despite the lack of growth or momentum.

Johnson and Johnson reports October 18th before the bell, and we are anticipating earnings of $1.65/share.  Make sure to watch the video for a quick guide to JNJ heading into the report, but if you want to learn more about trading in earnings season, check out our podcast below:

Confidential from Zacks

Would you like to access Zacks' 2 best trades that are not available to the public? Zacks Executive VP, Steve Reitmeister knows which of our experts has the hottest hand and when key trades are about to be triggered. Today he is prepared to pass the Best of Our Best along to you. See these timely buys now >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Johnson & Johnson (JNJ) - free report >>