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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
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In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $145.62, marking a +0.19% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.97%. Meanwhile, the Dow lost 2.32%, and the Nasdaq, a tech-heavy index, lost 2.78%.
Heading into today, shares of the world's biggest maker of health care products had gained 8.59% over the past month, outpacing the Medical sector's loss of 1.15% and the S&P 500's loss of 3.33% in that time.
Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. This is expected to be January 22, 2019. The company is expected to report EPS of $1.95, up 12.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.11 billion, down 0.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.16 per share and revenue of $81.32 billion, which would represent changes of +11.78% and +6.37%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for JNJ. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. JNJ currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that JNJ has a Forward P/E ratio of 17.81 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.76.
Also, we should mention that JNJ has a PEG ratio of 2.27. 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 2 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $145.62, marking a +0.19% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.97%. Meanwhile, the Dow lost 2.32%, and the Nasdaq, a tech-heavy index, lost 2.78%.
Heading into today, shares of the world's biggest maker of health care products had gained 8.59% over the past month, outpacing the Medical sector's loss of 1.15% and the S&P 500's loss of 3.33% in that time.
Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. This is expected to be January 22, 2019. The company is expected to report EPS of $1.95, up 12.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.11 billion, down 0.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.16 per share and revenue of $81.32 billion, which would represent changes of +11.78% and +6.37%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for JNJ. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% higher. JNJ currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that JNJ has a Forward P/E ratio of 17.81 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.76.
Also, we should mention that JNJ has a PEG ratio of 2.27. 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 2 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.