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

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In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $163.20, marking a -0.1% move from the previous day. This change lagged the S&P 500's 2.59% gain on the day. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.07%.

Heading into today, shares of the world's biggest maker of health care products had gained 0.38% over the past month, outpacing the Medical sector's loss of 3.87% and the S&P 500's loss of 9.22% in that time.

Johnson & Johnson will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2022. The company is expected to report EPS of $2.52, down 3.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.58 billion, up 1.03% from the year-ago period.

JNJ's full-year Zacks Consensus Estimates are calling for earnings of $10.05 per share and revenue of $95.13 billion. These results would represent year-over-year changes of +2.55% and +1.45%, respectively.

Any recent changes to analyst estimates for Johnson & Johnson 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% higher. Johnson & Johnson is currently a Zacks Rank #3 (Hold).

Digging into valuation, Johnson & Johnson currently has a Forward P/E ratio of 16.26. Its industry sports an average Forward P/E of 12.13, so we one might conclude that Johnson & Johnson is trading at a premium comparatively.

Meanwhile, JNJ's PEG ratio is currently 3.11. 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 1.78 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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.

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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