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Johnson & Johnson (JNJ) Outpaces Stock Market Gains: What You Should Know
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Johnson & Johnson (JNJ - Free Report) closed at $171.55 in the latest trading session, marking a +0.7% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 9.25% over the past month. This has outpaced the Medical sector's gain of 3.52% and the S&P 500's gain of 4.32% in that time.
Johnson & Johnson will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2022. On that day, Johnson & Johnson is projected to report earnings of $2.12 per share, which would represent year-over-year growth of 13.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.26 billion, up 12.37% from the year-ago period.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $94.23 billion. These results would represent year-over-year changes of +22.04% and +14.1%, respectively.
Investors should also note any recent changes to analyst estimates for Johnson & Johnson. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.17% higher. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 17.39. Its industry sports an average Forward P/E of 13.84, so we one might conclude that Johnson & Johnson is trading at a premium comparatively.
Also, we should mention that JNJ has a PEG ratio of 2.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.12 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 161, which puts it in the bottom 37% 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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Johnson & Johnson (JNJ) Outpaces Stock Market Gains: What You Should Know
Johnson & Johnson (JNJ - Free Report) closed at $171.55 in the latest trading session, marking a +0.7% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 9.25% over the past month. This has outpaced the Medical sector's gain of 3.52% and the S&P 500's gain of 4.32% in that time.
Johnson & Johnson will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2022. On that day, Johnson & Johnson is projected to report earnings of $2.12 per share, which would represent year-over-year growth of 13.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.26 billion, up 12.37% from the year-ago period.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $94.23 billion. These results would represent year-over-year changes of +22.04% and +14.1%, respectively.
Investors should also note any recent changes to analyst estimates for Johnson & Johnson. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.17% higher. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 17.39. Its industry sports an average Forward P/E of 13.84, so we one might conclude that Johnson & Johnson is trading at a premium comparatively.
Also, we should mention that JNJ has a PEG ratio of 2.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.12 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 161, which puts it in the bottom 37% 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.