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We recently published a list of 10 Stocks Expected To Post Impressive Earnings This Week. In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against other stocks expected to post impressive earnings this week.
The earnings season is in full flow as we kick off the week with earnings from big names like Netflix and United Airlines. Most of the big names are expecting a positive earnings report with some even hitting 52-week highs in anticipation of the upcoming earnings.
The S&P is up 0.5% while the Dow is about to hit the 1% mark, reflecting the positive sentiment among the US traders. We decided to compile a list of the top names scheduled to announce their earnings this week, looking at what was driving the optimism behind their earnings.
To come up with the list of 10 stocks expected to post impressive earnings this week, we only considered stocks with a market cap of over $30 billion that are scheduled to announce their earnings this week.
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Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) is a healthcare company that designs, sells, researches, and manufactures different products globally. By net income, it is among the top 50 companies in the world. The firm has reported a very stable gross and operating margin over the last decade, which makes it a favorite among defensive investors.
Johnson & Johnson (NYSE:JNJ) is scheduled to release its Q4 earnings on Wednesday. The company’s estimated sales growth for Q4 is 5% YoY. Management expects a 5% to 7% revenue growth rate till FY 2030. EPS is projected to go up by 3.47% per year till FY 2033 as per the management, though this is only a conservative estimate.
The stock performance was dismal in the previous year registering an 8% decline. There are reasons to believe that the underperformance will reverse in 2025. For instance, the company books much of its R&D expenses in the last quarter of the year, so a relatively poor performance in this quarter wouldn’t necessarily reflect on the upcoming quarters.
Johnson & Johnson (NYSE:JNJ) has an attractive dividend yield of 3.41%. At an attractive valuation, the stock continues to be appealing for defensive investors.
Overall, JNJ ranks 8th on our list of stocks expected to post impressive earnings this week. While we acknowledge the potential of JNJ as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as JNJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.