Johnson & Johnson (JNJ - Free Report) closed at $144.28 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.71% loss on the day. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Heading into today, shares of the world's biggest maker of health care products had gained 4.59% over the past month, outpacing the Medical sector's gain of 4.11% and lagging the S&P 500's gain of 4.77% in that time.
Investors will be hoping for strength from JNJ as it approaches its next earnings release, which is expected to be January 22, 2020. 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.
Investors might also notice recent changes to analyst estimates for JNJ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 has moved 0.1% higher within the past month. JNJ is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, JNJ currently has a Forward P/E ratio of 16.08. This represents a premium compared to its industry's average Forward P/E of 15.54.
We can also see that JNJ currently has a PEG ratio of 2.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.