Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $147.82, moving +1.25% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.66%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 3.03%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 4.65% over the past month. This has outpaced the Medical sector's loss of 1.89% and the S&P 500's loss of 2.43% 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. On that day, JNJ is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 12.07%. Our most recent consensus estimate is calling for quarterly revenue 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 should also note any recent changes to analyst estimates for JNJ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 0.1% higher. JNJ is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note JNJ's current valuation metrics, including its Forward P/E ratio of 17.89. This valuation marks a premium compared to its industry's average Forward P/E of 14.56.
Meanwhile, JNJ's PEG ratio is currently 2.28. 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 2.01 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 100, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.