Johnson & Johnson (JNJ - Free Report) closed at $139.38 in the latest trading session, marking a +1.62% move from the prior day. This move outpaced the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.54%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 5.17% over the past month. This has outpaced the Medical sector's gain of 4.62% and the S&P 500's gain of 1.07% in that time.
JNJ will be looking to display strength as it nears its next earnings release. On that day, JNJ is projected to report earnings of $1.86 per share, which would represent a year-over-year decline of 5.58%. Our most recent consensus estimate is calling for quarterly revenue of $20.78 billion, up 1.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.65 per share and revenue of $82.04 billion, which would represent changes of +5.75% and +0.56%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for JNJ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 currently has a Zacks Rank of #3 (Hold).
Digging into valuation, JNJ currently has a Forward P/E ratio of 15.85. For comparison, its industry has an average Forward P/E of 14.76, which means JNJ is trading at a premium to the group.
Also, we should mention that JNJ has a PEG ratio of 2.32. 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 2.07 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.