In the latest trading session, Johnson & Johnson (JNJ) closed at $137.17, marking a -0.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.6%.
Heading into today, shares of the world's biggest maker of health care products had lost 0.76% over the past month, lagging the Medical sector's loss of 0.07% and the S&P 500's gain of 2.39% in that time.
Investors will be hoping for strength from JNJ as it approaches its nex t earnings release, which is expected to be April 16, 2019. In tha t report , analysts expect JNJ to post earnings of $2.04 per share. This would mark a year-over-year decline of 0.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.63 billion, down 1.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.58 per share and revenue of $81.18 billion, which would represent changes of +4.89% and -0.49%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for JNJ. These recent revisions tend to reflect the evolving nature of short-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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. JNJ is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, JNJ is holding a Forward P/E ratio of 16.05. For comparison, its industry has an average Forward P/E of 15.52, which means JNJ is trading at a premium to the group.
It is also worth noting that JNJ currently has a PEG ratio of 2.11. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.15 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 104, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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