Johnson & Johnson (JNJ) Stock Dips While Market Gains: Key Facts

Johnson & Johnson (JNJ) closed at $156.76 in the latest trading session, marking a -0.9% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.63%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.82%.

Heading into today, shares of the world's biggest maker of health care products had gained 1.04% over the past month, outpacing the Medical sector's gain of 0.91% and lagging the S&P 500's gain of 1.76% in that time.

The upcoming earnings release of Johnson & Johnson will be of great interest to investors. The company's earnings report is expected on April 16, 2024. On that day, Johnson & Johnson is projected to report earnings of $2.64 per share, which would represent a year-over-year decline of 1.49%. Alongside, our most recent consensus estimate is anticipating revenue of $21.38 billion, indicating a 13.59% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.65 per share and revenue of $88.38 billion, which would represent changes of +7.36% and -4.99%, respectively, from the prior year.

Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Johnson & Johnson is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Johnson & Johnson is currently exchanging hands at a Forward P/E ratio of 14.85. Its industry sports an average Forward P/E of 14.16, so one might conclude that Johnson & Johnson is trading at a premium comparatively.

Meanwhile, JNJ's PEG ratio is currently 2.66. 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 1.72 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 25% 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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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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