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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know

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Johnson & Johnson (JNJ - Free Report) closed at $128.99 in the latest trading session, marking a +0.59% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq lost 1.11%.

Heading into today, shares of the world's biggest maker of health care products had gained 0.64% over the past month, lagging the Medical sector's gain of 9.42% and the S&P 500's gain of 13.44% 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 April 16, 2019. In that report, analysts expect JNJ to post earnings of $2.09 per share. This would mark year-over-year growth of 1.46%. Meanwhile, our latest consensus estimate is calling for revenue of $19.67 billion, down 1.67% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.59 per share and revenue of $81.23 billion, which would represent changes of +5.01% and -0.43%, respectively, from the prior year.

Any recent changes to analyst estimates for JNJ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.88% lower within the past month. JNJ currently has a Zacks Rank of #3 (Hold).

In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 14.93. This represents a premium compared to its industry's average Forward P/E of 14.04.

Meanwhile, JNJ's PEG ratio is currently 2.04. 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 1.91 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 77, which puts it in the top 31% 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.

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