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Johnson & Johnson (JNJ) Dips More Than Broader Market: What You Should Know

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The most recent trading session ended with Johnson & Johnson (JNJ - Free Report) standing at $159.84, reflecting a -1.41% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.12%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.41%.

The the stock of world's biggest maker of health care products has risen by 3.52% in the past month, lagging the Medical sector's gain of 3.58% and the S&P 500's gain of 4.83%.

Analysts and investors alike will be keeping a close eye on the performance of Johnson & Johnson in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.64, reflecting a 1.49% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $21.38 billion, showing a 13.59% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.65 per share and a revenue of $88.38 billion, signifying shifts of +7.36% and -4.99%, respectively, from the last year.

Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. Recent revisions tend to reflect the latest 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.

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, there's been a 0.08% fall in the Zacks Consensus EPS estimate. As of now, Johnson & Johnson holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 15.22 right now. This signifies a premium in comparison to the average Forward P/E of 14.88 for its industry.

It's also important to note that JNJ currently trades at a PEG ratio of 2.72. 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. JNJ's industry had an average PEG ratio of 1.73 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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