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Johnson & Johnson (JNJ) Stock Slides as Market Rises: Facts to Know Before You Trade

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Johnson & Johnson (JNJ - Free Report) ended the recent trading session at $228.39, demonstrating a -2.48% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.91%.

The world's biggest maker of health care products's stock has climbed by 2.13% in the past month, falling short of the Medical sector's gain of 3.16% and outpacing the S&P 500's gain of 0.29%.

Market participants will be closely following the financial results of Johnson & Johnson in its upcoming release. The company plans to announce its earnings on July 15, 2026. It is anticipated that the company will report an EPS of $2.83, marking a 2.17% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $25.04 billion, reflecting a 5.46% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $11.57 per share and revenue of $100.81 billion, which would represent changes of +7.23% and +7.02%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Johnson & Johnson. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. Johnson & Johnson is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Johnson & Johnson currently has a Forward P/E ratio of 20.25. This signifies a premium in comparison to the average Forward P/E of 15.47 for its industry.

It is also worth noting that JNJ currently has a PEG ratio of 2.29. 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 2.6.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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