Johnson & Johnson (JNJ - Free Report) closed the most recent trading day at $144.24, moving +0.82% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.
Heading into today, shares of the world's biggest maker of health care products had gained 3.03% over the past month, lagging the Medical sector's gain of 3.89% and the S&P 500's gain of 4.32% 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 July 16, 2019. 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.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $8.60 per share and revenue of $81.20 billion. These results would represent year-over-year changes of +5.13% and -0.46%, respectively.
Investors should also note any 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 remained stagnant. JNJ is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, JNJ currently has a Forward P/E ratio of 16.63. This represents a premium compared to its industry's average Forward P/E of 14.83.
We can also see that JNJ currently has a PEG ratio of 2.47. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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.