In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $131.84, marking a -0.99% move from the previous day. This change was narrower than the S&P 500's 1.56% loss on the day. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq lost 1.67%.
Coming into today, shares of the world's biggest maker of health care products had gained 4.89% in the past month. In that same time, the Medical sector lost 3.6%, while the S&P 500 lost 1.22%.
Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. This is expected to be October 15, 2019. In that report, analysts expect JNJ to post earnings of $2 per share. This would mark a year-over-year decline of 2.44%. Meanwhile, our latest consensus estimate is calling for revenue of $20.05 billion, down 1.45% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.60 per share and revenue of $81.51 billion, which would represent changes of +5.13% and -0.09%, respectively, from the prior year.
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.
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.
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 remained stagnant within the past month. JNJ currently has a Zacks Rank of #4 (Sell).
Digging into valuation, JNJ currently has a Forward P/E ratio of 15.49. For comparison, its industry has an average Forward P/E of 14.44, which means JNJ is trading at a premium to the group.
We can also see that JNJ currently has a PEG ratio of 2.25. 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 industry currently had an average PEG ratio of 2.11 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.