Johnson & Johnson (JNJ) closed at $141.23 in the latest trading session, marking a -0.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.75%.
Coming into today, shares of the world's biggest maker of health care products had gained 1.17% in the past month. In that same time, the Medical sector gained 1.22%, while the S&P 500 gained 3.84%.
Wall Street will be looking for positivity from JNJ as it approaches its next earnings report date. This is expected to be July 16, 2019. The company is expected to report EPS of $2.42, up 15.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.32 billion, down 2.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.60 per share and revenue of $81.20 billion, which would represent changes of +5.13% and -0.46%, respectively, from the prior year.
Any recent changes to analyst estimates for JNJ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. JNJ currently has a Zacks Rank of #3 (Hold).
Investors should also note JNJ's current valuation metrics, including its Forward P/E ratio of 16.44. Its industry sports an average Forward P/E of 14.58, so we one might conclude that JNJ is trading at a premium comparatively.
Also, we should mention that JNJ has a PEG ratio of 2.44. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 74, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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