Back to top

Image: Bigstock

Johnson & Johnson (JNJ) Stock Moves -0.2%: What You Should Know

Read MoreHide Full Article

Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $152.72, moving -0.2% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, added 0.51%.

Heading into today, shares of the world's biggest maker of health care products had gained 6.36% over the past month, outpacing the Medical sector's gain of 4.78% and the S&P 500's gain of 4% in that time.

JNJ will be looking to display strength as it nears its next earnings release. On that day, JNJ is projected to report earnings of $1.82 per share, which would represent a year-over-year decline of 3.19%. Our most recent consensus estimate is calling for quarterly revenue of $21.82 billion, up 5.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.99 per share and revenue of $81.93 billion. These totals would mark changes of -7.95% and -0.16%, respectively, from last year.

Any recent changes to analyst estimates for JNJ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. JNJ currently has a Zacks Rank of #3 (Hold).

In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 19.16. Its industry sports an average Forward P/E of 13.66, so we one might conclude that JNJ is trading at a premium comparatively.

Investors should also note that JNJ has a PEG ratio of 3.3 right now. 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. JNJ's industry had an average PEG ratio of 2.2 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 118, putting it in the top 47% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


See More Zacks Research for These Tickers


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


Johnson & Johnson (JNJ) - free report >>

Published in