3 Medical Stocks to Watch as Q2 Earnings Approach: ABT, JNJ, NVS

Core Viewpoint - Strong Q2 results from banks and financial firms highlight the importance of monitoring upcoming earnings reports from medical companies, which can serve as a hedge against market volatility [1][2]. Group 1: Johnson & Johnson (JNJ) - Johnson & Johnson is a leader in the Zacks Large Cap Pharmaceuticals Industry, which ranks in the top 29% of over 240 Zacks industries [3]. - The company is expected to report Q2 results on July 16, with EPS projected to dip 5% to $2.66, but shares trade at a reasonable forward earnings multiple of 14.7X [4]. - JNJ has a 3.32% annual dividend yield, above the industry average of 2.57% and the S&P 500's 1.18% [4]. - The bottom line is projected to expand 6% this year, with FY26 EPS forecasted to rise 4% to $11.09 per share [5]. - The Most Accurate estimate for Q2 EPS is $2.72, which is 2% above the Zacks Consensus [5][6]. Group 2: Novartis (NVS) - Novartis is also part of the top-rated Zacks Large Cap Pharmaceuticals Industry and will report Q2 results on July 17 [6]. - Q2 sales are expected to rise 9% year-over-year to $14.04 billion, with EPS projected to increase 21% to $2.38 [8]. - FY25 EPS estimates have slightly increased, with FY26 EPS estimates rising from $9.14 to $9.35 per share [8]. - NVS trades at an attractive forward earnings multiple of 13.5X and offers a 2.14% annual dividend yield [8]. Group 3: Abbott Laboratories (ABT) - Abbott Laboratories will report Q2 results on July 17, with a diversified line of healthcare products [10]. - Q2 earnings are expected to rise 9% to $1.25 per share, with the Most Accurate estimate at $1.27, slightly above the Zacks Consensus [10][12]. - Sales for Q2 are projected to increase nearly 7% to $11.07 billion, with mid to high single-digit growth expected for the annual outlook [10]. - ABT has a forward earnings multiple of 25.6X, near the industry average, and a 1.79% annual dividend yield [11]. Conclusion - The outlook for Johnson & Johnson, Novartis, and Abbott Laboratories suggests these stocks are worthy of consideration, especially in the context of potential market volatility [13].