Johnson & Johnson (JNJ - Free Report) closed at $137.73 in the latest trading session, marking a -1.06% move from the prior day. This move was narrower than the S&P 500's daily loss of 3.29%. At the same time, the Dow lost 3.15%, and the tech-heavy Nasdaq lost 4.08%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 0.5% over the past month. This has outpaced the Medical sector's loss of 1.22% and the S&P 500's gain of 0.44% in that time.
JNJ will be looking to display strength as it nears its next earnings release, which is expected to be October 16, 2018. In that report, analysts expect JNJ to post earnings of $2.03 per share. This would mark year-over-year growth of 6.84%. Meanwhile, our latest consensus estimate is calling for revenue of $19.91 billion, up 1.33% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.14 per share and revenue of $81.13 billion. These totals would mark changes of +11.51% and +6.13%, respectively, from last year.
Any recent changes to analyst estimates for JNJ should also be noted by investors. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. JNJ is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 17.1. For comparison, its industry has an average Forward P/E of 16.61, which means JNJ is trading at a premium to the group.
Also, we should mention that JNJ has a PEG ratio of 2.21. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 21, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow JNJ in the coming trading sessions, be sure to utilize Zacks.com.