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Johnson & Johnson (JNJ) ended the recent trading session at $143.85, demonstrating a -1.89% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.38%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 1.24%.
Heading into today, shares of the world's biggest maker of health care products had lost 4.79% over the past month, lagging the Medical sector's loss of 4.06% and the S&P 500's gain of 1.17% 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 January 22, 2025. The company's upcoming EPS is projected at $2, signifying a 12.66% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $22.54 billion, indicating a 5.37% upward movement from the same quarter last year.
JNJ's full-year Zacks Consensus Estimates are calling for earnings of $9.94 per share and revenue of $88.84 billion. These results would represent year-over-year changes of +0.2% and -4.49%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Johnson & Johnson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Johnson & Johnson currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Johnson & Johnson is currently trading at a Forward P/E ratio of 14.75. This expresses a premium compared to the average Forward P/E of 14.01 of its industry.
One should further note that JNJ currently holds a PEG ratio of 2.52. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.48 at the close of the market yesterday.