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Johnson & Johnson (JNJ) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Johnson & Johnson (JNJ - Free Report) ending at $145.27, denoting a +0.55% adjustment from its last day's close. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.98%.

Prior to today's trading, shares of the world's biggest maker of health care products had lost 6.9% over the past month. This has lagged the Medical sector's loss of 3.8% and the S&P 500's gain of 0.34% in that time.

The investment community will be paying close attention to the earnings performance of Johnson & Johnson in its upcoming release. The company is slated to reveal its earnings on January 22, 2025. The company is forecasted to report an EPS of $2, showcasing a 12.66% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.54 billion, up 5.37% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $9.94 per share and a revenue of $88.84 billion, demonstrating changes of +0.2% and -4.49%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, Johnson & Johnson is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 14.54. This expresses a premium compared to the average Forward P/E of 13.74 of its industry.

It's also important to note that JNJ currently trades at a PEG ratio of 2.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.44.

The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 131, this industry ranks in the bottom 48% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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