Johnson & Johnson (JNJ) Gains But Lags Market: What You Should Know

Johnson & Johnson (JNJ) closed at $178 in the latest trading session, marking a +1.08% move from the prior day. This move lagged the S&P 500's daily gain of 3.1%. Elsewhere, the Dow gained 2.18%, while the tech-heavy Nasdaq added 0.21%.

Coming into today, shares of the world's biggest maker of health care products had gained 1.73% in the past month. In that same time, the Medical sector gained 2.56%, while the S&P 500 gained 1.66%.

Wall Street will be looking for positivity from Johnson & Johnson as it approaches its next earnings report date. In that report, analysts expect Johnson & Johnson to post earnings of $2.23 per share. This would mark year-over-year growth of 4.69%. Our most recent consensus estimate is calling for quarterly revenue of $23.8 billion, down 4.05% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.04 per share and revenue of $95.04 billion, which would represent changes of +2.45% and +1.35%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 0.01% lower. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 17.53 right now. For comparison, its industry has an average Forward P/E of 14.64, which means Johnson & Johnson is trading at a premium to the group.

Also, we should mention that JNJ has a PEG ratio of 3.49. 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 industry currently had an average PEG ratio of 1.94 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

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