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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
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In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $172.21, marking a +1.61% move from the previous day. This move outpaced the S&P 500's daily loss of 2.95%. At the same time, the Dow lost 2.37%, and the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the world's biggest maker of health care products had lost 1.25% over the past month, lagging the Medical sector's loss of 0.72% and outpacing the S&P 500's loss of 3.75% in that time.
Johnson & Johnson will be looking to display strength as it nears its next earnings release. In that report, analysts expect Johnson & Johnson to post earnings of $2.62 per share. This would mark year-over-year growth of 1.16%. Meanwhile, our latest consensus estimate is calling for revenue of $23.85 billion, up 6.85% from the prior-year quarter.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.50 per share and revenue of $99.49 billion. These results would represent year-over-year changes of +7.14% and +6.1%, respectively.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 16.15 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.08.
It is also worth noting that JNJ currently has a PEG ratio of 2.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.03 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 98, putting it in the top 39% 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.
To follow JNJ in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $172.21, marking a +1.61% move from the previous day. This move outpaced the S&P 500's daily loss of 2.95%. At the same time, the Dow lost 2.37%, and the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the world's biggest maker of health care products had lost 1.25% over the past month, lagging the Medical sector's loss of 0.72% and outpacing the S&P 500's loss of 3.75% in that time.
Johnson & Johnson will be looking to display strength as it nears its next earnings release. In that report, analysts expect Johnson & Johnson to post earnings of $2.62 per share. This would mark year-over-year growth of 1.16%. Meanwhile, our latest consensus estimate is calling for revenue of $23.85 billion, up 6.85% from the prior-year quarter.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.50 per share and revenue of $99.49 billion. These results would represent year-over-year changes of +7.14% and +6.1%, respectively.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 16.15 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.08.
It is also worth noting that JNJ currently has a PEG ratio of 2.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.03 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 98, putting it in the top 39% 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.
To follow JNJ in the coming trading sessions, be sure to utilize Zacks.com.