Johnson & Johnson (JNJ) Increases Despite Market Slip: Here's What You Need to Know

Johnson & Johnson (JNJ) closed at $161.23 in the latest trading session, marking a +1.07% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.41%.

The world's biggest maker of health care products's shares have seen an increase of 1.76% over the last month, not keeping up with the Medical sector's gain of 3.03% and the S&P 500's gain of 2.7%.

The upcoming earnings release of Johnson & Johnson will be of great interest to investors. The company's upcoming EPS is projected at $2.64, signifying a 1.49% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.38 billion, indicating a 13.59% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.65 per share and revenue of $88.38 billion. These totals would mark changes of +7.36% and -4.99%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Johnson & Johnson. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. At present, Johnson & Johnson boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 14.97. For comparison, its industry has an average Forward P/E of 14.4, which means Johnson & Johnson is trading at a premium to the group.

We can also see that JNJ currently has a PEG ratio of 2.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. JNJ's industry had an average PEG ratio of 1.67 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 25% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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