Johnson & Johnson (NYSE:JNJ) closed at $136.35 in the latest trading session, marking a +0.49% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.03%.
Coming into today, shares of the world's biggest maker of health care products had gained 5.35% in the past month. In that same time, the Medical sector gained 3%, while the S&P 500 gained 4.28%.
JNJ will be looking to display strength as it nears its next earnings release. On that day, JNJ is projected to report earnings of $2.09 per share, which would represent year-over-year growth of 1.46%. Our most recent consensus estimate is calling for quarterly revenue of $19.67 billion, down 1.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.57 per share and revenue of $81.23 billion, which would represent changes of +4.77% and -0.43%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.75% lower within the past month. JNJ is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note JNJ's current valuation metrics, including its Forward P/E ratio of 15.83. Its industry sports an average Forward P/E of 15.28, so we one might conclude that JNJ is trading at a premium comparatively.
Meanwhile, JNJ's PEG ratio is currently 2.17. 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 172, putting it in the bottom 33% 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.
Johnson & Johnson (JNJ): Free Stock Analysis Report
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