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Here's Why Johnson & Johnson (JNJ) is a Strong Momentum Stock
J&JJ&J(US:JNJ) ZACKSยท2025-07-07 14:55

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [4] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - Targets stocks experiencing upward or downward trends in price or earnings, utilizing recent price changes and earnings estimate revisions [6] VGM Score - Combines all three Style Scores to provide a comprehensive rating, helping investors identify stocks with attractive value, growth forecasts, and momentum [7] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10] Johnson & Johnson (JNJ) Analysis - Johnson & Johnson is recognized for its diversified business model, operating through pharmaceuticals and medical devices, with over 275 subsidiaries [12] - JNJ holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of A, indicating strong performance potential [13] - Recent upward revisions in earnings estimates for fiscal 2025 suggest a positive outlook, with the Zacks Consensus Estimate increasing by $0.02 to $10.62 per share [13]