In the latest close session, Johnson & Johnson (JNJ) was down 1.25% at $252.83. This change lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.05%.
The world's biggest maker of health care products's stock has dropped by 6.98% in the past month, falling short of the Medical sector's loss of 3.74% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Johnson & Johnson will be of great interest to investors. The company's earnings report is expected on October 13, 2026. The company's earnings per share (EPS) are projected to be $2.9, reflecting a 3.57% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $25.37 billion, up 5.75% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.54 per share and revenue of $101.15 billion, which would represent changes of +6.95% and +7.39%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Johnson & Johnson. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.61% downward. As of now, Johnson & Johnson holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Johnson & Johnson is holding a Forward P/E ratio of 22.19. This expresses a premium compared to the average Forward P/E of 15.91 of its industry.
We can also see that JNJ currently has a PEG ratio of 2.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.91.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 109, this industry ranks in the top 45% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Johnson & Johnson (JNJ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).