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Johnson & Johnson (JNJ) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Johnson & Johnson (JNJ) closed the latest trading day at $158.55, indicating a -0.21% change from the previous session's end. This change lagged the S&P 500's 0.06% loss on the day. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.31%.

The the stock of world's biggest maker of health care products has risen by 4.73% in the past month, leading the Medical sector's gain of 3.9% and undershooting the S&P 500's gain of 5.1%.

Investors will be eagerly watching for the performance of Johnson & Johnson in its upcoming earnings disclosure. On that day, Johnson & Johnson is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 3.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.92 billion, down 11.76% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $10.08 per share and a revenue of $84.68 billion, demonstrating changes of -0.69% and -10.81%, respectively, from the preceding year.

Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.78% lower within the past month. Right now, Johnson & Johnson possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Johnson & Johnson is presently trading at a Forward P/E ratio of 15.76. This denotes no noticeable deviation relative to the industry's average Forward P/E of 15.76.

It is also worth noting that JNJ currently has a PEG ratio of 3.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 2.07.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Johnson & Johnson (JNJ) : Free Stock Analysis Report

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Zacks Investment Research