Back to top

Image: Bigstock

Johnson & Johnson (JNJ) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $240.87, moving +1.07% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.5%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.31%.

The world's biggest maker of health care products's shares have seen an increase of 3.26% over the last month, not keeping up with the Medical sector's gain of 5.49% and outstripping the S&P 500's loss of 0.23%.

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 July 15, 2026. The company's earnings per share (EPS) are projected to be $2.83, reflecting a 2.17% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $25.04 billion, indicating a 5.46% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.57 per share and revenue of $100.81 billion. These totals would mark changes of +7.23% and +7.02%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Johnson & Johnson. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. At present, Johnson & Johnson boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Johnson & Johnson is presently trading at a Forward P/E ratio of 20.6. This represents a premium compared to its industry average Forward P/E of 15.58.

It's also important to note that JNJ currently trades at a PEG ratio of 2.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 113, this industry ranks in the top 47% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

Published in