Yahoo Finance Johnson & Johnson (JNJ) Stock Sinks As Market Gains: What You Should Know
Johnson & Johnson (JNJ) closed at $178.14 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.49%.
Coming into today, shares of the world's biggest maker of health care products had gained 1.77% in the past month. In that same time, the Medical sector lost 1.13%, while the S&P 500 lost 6.79%.
Investors will be hoping for strength from Johnson & Johnson as it approaches its next earnings release, which is expected to be July 19, 2022. In that report, analysts expect Johnson & Johnson to post earnings of $2.59 per share. This would mark year-over-year growth of 4.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.99 billion, up 2.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.23 per share and revenue of $96.62 billion, which would represent changes of +4.39% and +3.04%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Johnson & Johnson has a Forward P/E ratio of 17.54 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.23.
Investors should also note that JNJ has a PEG ratio of 3.55 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JNJ's industry had an average PEG ratio of 2 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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