Johnson & Johnson (JNJ – Free Report) closed the latest trading day at $144.62, indicating a +0.89% change from the previous session’s end. The stock’s change was more than the S&P 500’s daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.9%.
Shares of the world’s biggest maker of health care products have depreciated by 7.4% over the course of the past month, underperforming the Medical sector’s loss of 7.03% and the S&P 500’s loss of 1.98%.
Analysts and investors alike will be keeping a close eye on the performance of Johnson & Johnson in its upcoming earnings disclosure. The company’s earnings report is set to go public on January 22, 2025. On that day, Johnson & Johnson is projected to report earnings of $2 per share, which would represent a year-over-year decline of 12.66%. Meanwhile, the latest consensus estimate predicts the revenue to be $22.54 billion, indicating a 5.37% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.94 per share and a revenue of $88.84 billion, representing changes of +0.2% and -4.49%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Johnson & Johnson. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Johnson & Johnson is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 14.42. This denotes a premium relative to the industry’s average Forward P/E of 13.8.
Meanwhile, JNJ’s PEG ratio is currently 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.45 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 141, which puts it in the bottom 44% 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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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