In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $135.50, marking a -0.47% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.72%, while the tech-heavy Nasdaq lost 0.56%.
Coming into today, shares of the world's biggest maker of health care products had lost 1.75% in the past month. In that same time, the Medical sector gained 2.13%, while the S&P 500 gained 5.68%.
Investors will be hoping for strength from JNJ as it approaches its next earnings release, which is expected to be April 16, 2019. The company is expected to report EPS of $2.04, down 0.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.63 billion, down 1.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.58 per share and revenue of $81.18 billion, which would represent changes of +4.89% and -0.49%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for JNJ. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. JNJ is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, JNJ is holding a Forward P/E ratio of 15.87. This valuation marks a premium compared to its industry's average Forward P/E of 15.4.
Investors should also note that JNJ has a PEG ratio of 2.08 right now. 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 2.13 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.