Why Johnson & Johnson (JNJ) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's future earnings and financial health [4] - Momentum Score evaluates stocks based on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Johnson & Johnson (JNJ) Analysis - Johnson & Johnson is recognized for its diversified business model, operating in pharmaceuticals and medical devices with over 275 subsidiaries [11] - JNJ holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating solid performance potential [12] - The company has a forward P/E ratio of 15.63, making it attractive for value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate for fiscal 2025 increasing by $0.03 to$10.58 per share [12] - JNJ's average earnings surprise stands at 4.4%, further supporting its investment appeal [12][13]