Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $128.93, moving -0.79% from the previous trading session. This change lagged the S&P 500's 0.48% gain on the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.8%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 11.29% over the past month. This has lagged the Medical sector's loss of 3.81% and the S&P 500's loss of 2.09% in that time.
Investors will be hoping for strength from JNJ as it approaches its next earnings release, which 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%. Meanwhile, our latest consensus estimate is calling for revenue of $20.11 billion, down 0.42% from the prior-year quarter.
Any recent changes to analyst estimates for JNJ should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 0.13% lower within the past month. JNJ currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, JNJ is holding a Forward P/E ratio of 15.03. This represents a premium compared to its industry's average Forward P/E of 14.6.
Also, we should mention that JNJ has a PEG ratio of 1.92. 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. JNJ's industry had an average PEG ratio of 1.91 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.