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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 $176.47, moving -0.97% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.37%.
Heading into today, shares of the world's biggest maker of health care products had gained 5.14% over the past month, lagging the Medical sector's gain of 6.56% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release, which is expected to be April 19, 2022. In that report, analysts expect Johnson & Johnson to post earnings of $2.63 per share. This would mark year-over-year growth of 1.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.8 billion, up 6.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.50 per share and revenue of $99.44 billion. These totals would mark changes of +7.14% and +6.04%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 16.98. For comparison, its industry has an average Forward P/E of 13, which means Johnson & Johnson is trading at a premium to the group.
Also, we should mention that JNJ has a PEG ratio of 2.68. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.37 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 159, which puts it in the bottom 38% 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.
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) Stock Sinks As Market Gains: What You Should Know
Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $176.47, moving -0.97% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.37%.
Heading into today, shares of the world's biggest maker of health care products had gained 5.14% over the past month, lagging the Medical sector's gain of 6.56% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release, which is expected to be April 19, 2022. In that report, analysts expect Johnson & Johnson to post earnings of $2.63 per share. This would mark year-over-year growth of 1.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.8 billion, up 6.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.50 per share and revenue of $99.44 billion. These totals would mark changes of +7.14% and +6.04%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Johnson & Johnson. These recent revisions tend to reflect the evolving nature of short-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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 16.98. For comparison, its industry has an average Forward P/E of 13, which means Johnson & Johnson is trading at a premium to the group.
Also, we should mention that JNJ has a PEG ratio of 2.68. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.37 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 159, which puts it in the bottom 38% 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.
To follow JNJ in the coming trading sessions, be sure to utilize Zacks.com.