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Johnson & Johnson (JNJ) Exceeds Market Returns: Some Facts to Consider

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Johnson & Johnson (JNJ - Free Report) closed the latest trading day at $155.36, indicating a +1.38% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq increased by 0.87%.

The world's biggest maker of health care products's stock has dropped by 7.36% in the past month, falling short of the Medical sector's loss of 5.32% and the S&P 500's loss of 5.28%.

The investment community will be closely monitoring the performance of Johnson & Johnson in its forthcoming earnings report. The company is scheduled to release its earnings on April 15, 2025. The company's upcoming EPS is projected at $2.59, signifying a 4.43% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $21.66 billion, indicating a 1.29% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.58 per share and revenue of $90.03 billion. These totals would mark changes of +6.01% and +1.36%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Johnson & Johnson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 14.48. This expresses a premium compared to the average Forward P/E of 13.71 of its industry.

We can additionally observe that JNJ currently boasts a PEG ratio of 2.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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