In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $130.42, marking a +0.99% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the world's biggest maker of health care products had lost 12.58% in the past month. In that same time, the Medical sector lost 5.57%, while the S&P 500 lost 7.29%.
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%. Our most recent consensus estimate is calling for quarterly revenue 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. JNJ is currently a Zacks Rank #4 (Sell).
Looking at its valuation, JNJ is holding a Forward P/E ratio of 15.82. For comparison, its industry has an average Forward P/E of 14.23, which means JNJ is trading at a premium to the group.
Meanwhile, JNJ's PEG ratio is currently 2.02. 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. JNJ's industry had an average PEG ratio of 1.9 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 95, putting it in the top 37% 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.
To follow JNJ in the coming trading sessions, be sure to utilize Zacks.com.