Johnson & Johnson (JNJ) closed the most recent trading day at $176.66, moving -0.43% from the previous trading session. This change was narrower than the S&P 500’s 1.2% loss on the day. Elsewhere, the Dow lost 1.1%, while the tech-heavy Nasdaq lost 2.86%.
Prior to today’s trading, shares of the world’s biggest maker of health care products had gained 0.76% over the past month. This has outpaced the Medical sector’s gain of 0.3% and the S&P 500’s loss of 4.77% in that time.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release, which is expected to be January 24, 2023. The company is expected to report EPS of $2.22, up 4.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.79 billion, down 4.1% from the year-ago period.
JNJ’s full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $95.02 billion. These results would represent year-over-year changes of +2.45% and +1.33%, respectively.
It is also important to note the recent changes to analyst estimates for Johnson & Johnson. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Johnson & Johnson is currently a Zacks Rank #3 (Hold).
In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 17.67. This represents a premium compared to its industry’s average Forward P/E of 15.09.
We can also see that JNJ currently has a PEG ratio of 3.52. 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 was holding an average PEG ratio of 2.13 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 146, which puts it in the bottom 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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