Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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.
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’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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 15.6X for the current fiscal year compared to the Large Cap Pharmaceuticals industry's P/E of 14.3X. Additionally, JNJ has a PEG Ratio of 2.7 and a Price/Cash Flow ratio of 12.6X. Value investors should also note JNJ's Price/Sales ratio of 4.5X.
Many value investors pay close attention to a company's earnings as well. For JNJ, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $10.58 per share for 2025. Per share JNJ boasts an average earnings surprise of 4.4%.
Investors should take the time to consider JNJ for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Johnson & Johnson (JNJ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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