In the latest market close, Johnson & Johnson (JNJ – Free Report) reached $163.29, with a -0.21% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily gain of 1.77%. At the same time, the Dow added 1.42%, and the tech-heavy Nasdaq gained 2.28%.
Prior to today’s trading, shares of the world’s biggest maker of health care products had gained 0.82% over the past month. This has outpaced the Medical sector’s loss of 1.17% and the S&P 500’s loss of 5.73% in that time.
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 April 15, 2025. The company’s earnings per share (EPS) are projected to be $2.59, reflecting a 4.43% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $21.66 billion, indicating a 1.29% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.58 per share and revenue of $90.03 billion, indicating changes of +6.01% and +1.36%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Johnson & Johnson. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate remained stagnant. Johnson & Johnson is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 15.46 right now. This denotes a premium relative to the industry’s average Forward P/E of 14.53.
One should further note that JNJ currently holds a PEG ratio of 2.62. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.34 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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