In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $129.99, marking a +0.47% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.28%, while the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the world's biggest maker of health care products had gained 0.79% in the past month. In that same time, the Medical sector lost 1.2%, while the S&P 500 gained 1.95%.
JNJ will be looking to display strength as it nears its next earnings release, which is expected to be October 15, 2019. The company is expected to report EPS of $2, down 2.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.05 billion, down 1.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.60 per share and revenue of $81.51 billion. These totals would mark changes of +5.13% and -0.09%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for JNJ. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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 remained stagnant within the past month. JNJ is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, JNJ is currently trading at a Forward P/E ratio of 15.05. Its industry sports an average Forward P/E of 14.53, so we one might conclude that JNJ is trading at a premium comparatively.
Also, we should mention that JNJ has a PEG ratio of 2.19. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.