In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $132.12, marking a +0.6% move from the previous day. This move outpaced the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.27%.
Heading into today, shares of the world's biggest maker of health care products had lost 7.48% over the past month, lagging the Medical sector's loss of 1.96% and the S&P 500's loss of 5.26% in that time.
Investors will be hoping for strength from JNJ as it approaches its next earnings release. In that report, analysts expect JNJ to post earnings of $2.42 per share. This would mark year-over-year growth of 15.24%. Our most recent consensus estimate is calling for quarterly revenue of $20.32 billion, down 2.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.60 per share and revenue of $81.20 billion, which would represent changes of +5.13% and -0.46%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for JNJ. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. JNJ is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that JNJ has a Forward P/E ratio of 15.27 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.27.
Investors should also note that JNJ has a PEG ratio of 2.27 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. JNJ's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.