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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Johnson & Johnson (JNJ)
Johnson & Johnson’s biggest strength is its diversified business model. It operates through pharmaceuticals and medical devices divisions. It has more than 275 subsidiaries, which clearly means that the business is extremely well diversified. Its diversification helps it to withstand economic cycles more effectively. J&J has 26 platforms with more than $1 billion in annual sales. Meanwhile, J&J has one of the largest R&D budgets among pharma companies.
JNJ boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Johnson & Johnson are trading at a forward earnings multiple of 14.9X, as well as a PEG Ratio of 2.4, a Price/Cash Flow ratio of 12X, and a Price/Sales ratio of 4.3X.
A company's earnings performance is important for value investors as well. For fiscal 2025, five analysts revised their earnings estimate higher in the last 60 days for JNJ, while the Zacks Consensus Estimate has increased $0.02 to $10.60 per share. JNJ also holds an average earnings surprise of 5.7%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding JNJ to their portfolios.
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Johnson & Johnson (JNJ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).