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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
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In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $158.08, marking a +1.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.18%. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 0.92%.
Coming into today, shares of the world's biggest maker of health care products had lost 5.83% in the past month. In that same time, the Medical sector lost 4.79%, while the S&P 500 lost 0.73%.
Johnson & Johnson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.12, up 13.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $25.26 billion, up 12.37% from the year-ago period.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $9.78 per share and revenue of $94.23 billion. These results would represent year-over-year changes of +21.79% and +14.1%, respectively.
Investors might also notice recent changes to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Johnson & Johnson is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 15.94. For comparison, its industry has an average Forward P/E of 12.93, which means Johnson & Johnson is trading at a premium to the group.
Investors should also note that JNJ has a PEG ratio of 2.28 right now. 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 1.97 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 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know
In the latest trading session, Johnson & Johnson (JNJ - Free Report) closed at $158.08, marking a +1.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.18%. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 0.92%.
Coming into today, shares of the world's biggest maker of health care products had lost 5.83% in the past month. In that same time, the Medical sector lost 4.79%, while the S&P 500 lost 0.73%.
Johnson & Johnson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.12, up 13.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $25.26 billion, up 12.37% from the year-ago period.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $9.78 per share and revenue of $94.23 billion. These results would represent year-over-year changes of +21.79% and +14.1%, respectively.
Investors might also notice recent changes to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Johnson & Johnson is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 15.94. For comparison, its industry has an average Forward P/E of 12.93, which means Johnson & Johnson is trading at a premium to the group.
Investors should also note that JNJ has a PEG ratio of 2.28 right now. 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 1.97 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 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.