Back to top

Johnson & Johnson (JNJ) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $147.10, marking a +0.41% move from the previous day. The stock lagged the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.95%.

Coming into today, shares of the world's biggest maker of health care products had gained 1.26% in the past month. In that same time, the Medical sector lost 2.71%, while the S&P 500 lost 4.97%.

Investors will be hoping for strength from JNJ as it approaches its next earnings release, which 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, our latest consensus estimate is calling for revenue of $20.11 billion, down 0.42% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.16 per share and revenue of $81.32 billion. These totals would mark changes of +11.78% and +6.37%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for JNJ. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 remained stagnant. 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 17.95. This valuation marks a premium compared to its industry's average Forward P/E of 14.47.

Meanwhile, JNJ's PEG ratio is currently 2.29. 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. JNJ's industry had an average PEG ratio of 1.95 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% 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.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Johnson & Johnson (JNJ) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in