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Johnson & Johnson (JNJ) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $204.31, marking a -1.47% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 0.69%.

Prior to today's trading, shares of the world's biggest maker of health care products had gained 2.68% outpaced the Medical sector's gain of 0.63% and the S&P 500's gain of 0.55%.

The upcoming earnings release of Johnson & Johnson will be of great interest to investors. The company's earnings report is expected on January 21, 2026. On that day, Johnson & Johnson is projected to report earnings of $2.53 per share, which would represent year-over-year growth of 24.02%. At the same time, our most recent consensus estimate is projecting a revenue of $24.11 billion, reflecting a 7.06% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.87 per share and revenue of $93.7 billion, which would represent changes of +8.92% and 0%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Johnson & Johnson. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Currently, Johnson & Johnson is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Johnson & Johnson is at present trading with a Forward P/E ratio of 18.04. This denotes a premium relative to the industry average Forward P/E of 14.5.

It's also important to note that JNJ currently trades at a PEG ratio of 2.13. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.56.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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