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Johnson & Johnson (JNJ) Stock Sinks As Market Gains: What You Should Know

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Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $175.39, moving -1.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.15%.

Heading into today, shares of the world's biggest maker of health care products had gained 3.34% over the past month, outpacing the Medical sector's gain of 2.63% and the S&P 500's gain of 1.68% in that time.

Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.65 per share and revenue of $94.34 billion, which would represent changes of +20.17% and +14.23%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for JNJ. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. JNJ currently has a Zacks Rank of #3 (Hold).

Digging into valuation, JNJ currently has a Forward P/E ratio of 18.4. This valuation marks a premium compared to its industry's average Forward P/E of 14.75.

Investors should also note that JNJ has a PEG ratio of 2.37 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 123, putting it in the top 49% 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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