In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $145.85, marking a -0.4% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Coming into today, shares of the world's biggest maker of health care products had gained 4.61% in the past month. In that same time, the Medical sector gained 6.05%, while the S&P 500 gained 3.57%.
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. In that report, analysts expect JNJ to post earnings of $1.95 per share. This would mark year-over-year growth of 12.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.11 billion, down 0.42% from the year-ago period.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $8.16 per share and revenue of $81.32 billion. These results would represent year-over-year changes of +11.78% and +6.37%, respectively.
Investors should also note any recent changes to analyst estimates for JNJ. Recent revisions tend to reflect the latest near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JNJ is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note JNJ's current valuation metrics, including its Forward P/E ratio of 17.94. This valuation marks a premium compared to its industry's average Forward P/E of 14.86.
Also, we should mention that JNJ has a PEG ratio of 2.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.