Johnson & Johnson (JNJ) closed at $159.02 in the latest trading session, marking a -0.77% move from the prior day. This change was narrower than the S&P 500's 1.47% loss on the day. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 1.57%.
Prior to today's trading, shares of the world's biggest maker of health care products had lost 2.45% over the past month. This has lagged the Medical sector's loss of 2.14% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from Johnson & Johnson as it approaches its next earnings report date. This is expected to be October 17, 2023. The company is expected to report EPS of $2.52, down 1.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.61 billion, down 9.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.03 per share and revenue of $84.48 billion, which would represent changes of -1.18% and -11.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 6.78% lower. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 15.99. This represents a premium compared to its industry's average Forward P/E of 14.72.
Meanwhile, JNJ's PEG ratio is currently 3.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JNJ's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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