Johnson & Johnson (JNJ) Gains As Market Dips: What You Should Know

In the latest trading session, Johnson & Johnson (JNJ) closed at $178.35, marking a +0.04% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Heading into today, shares of the world's biggest maker of health care products had gained 3.32% over the past month, outpacing the Medical sector's gain of 0.72% and the S&P 500's loss of 5.08% in that time.

Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release, which is expected to be July 19, 2022. In that report, analysts expect Johnson & Johnson to post earnings of $2.59 per share. This would mark year-over-year growth of 4.44%. Our most recent consensus estimate is calling for quarterly revenue of $23.99 billion, up 2.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.23 per share and revenue of $96.62 billion, which would represent changes of +4.39% and +3.04%, respectively, from the prior year.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 17.42. For comparison, its industry has an average Forward P/E of 13.02, which means Johnson & Johnson is trading at a premium to the group.

We can also see that JNJ currently has a PEG ratio of 3.53. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% 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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