Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Johnson & Johnson Stock Is Trouncing the Dow

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down after Bank of America (NYSE: BAC  ) and Intel (NASDAQ: INTC  ) both reported weaker-than-expected earnings, pulling their sectors down with them. All but three of the 30 Dow stocks are down for the day, with Johnson & Johnson among the few making gains. As of 1:15 p.m. EDT the Dow is down 157 points, or 1.06%, to 14,599. The S&P 500 (SNPINDEX: ^GSPC  ) is down 1.7% to 1,548.

Intel is down 0.5% after yesterday's after-hours earnings report fell short of analyst expectations. Estimates called for a 22.5% drop in earnings per share to $0.41 and a 2% drop in revenue to $12.61 billion. Intel reported EPS of $0.40 and revenue of $12.58 billion. Intel and other tech stocks were hit last week when market researcher IDC reported that PC sales were down 14% in Q1, falling far more than its earlier prediction of 8%. Intel's earnings validate that report and are one of the two major reasons the tech sector as a whole is down today. Looking forward, Intel expects sales to remain roughly constant in the second quarter due to slowing PC demand. It kept its forecast for the rest of the year constant.

Bank of America is down 6.2% after the bank reported this morning that its earnings were quadruple those of last year but were nonetheless weaker than analyst expectations. Earnings were $0.20 per share, below analyst expectations of $0.20 per share, while revenue was $23.7 billion, beating analyst expectations of $23.49 billion. Investors were disappointed that the bank's rise in earnings came largely from cost-cutting, rather than growth in income. Also, investors were disappointed that there was not more mortgage lending at a time when new housing starts are nearing five-year highs.

Today's Dow leader
Today's Dow leader is Johnson & Johnson (NYSE: JNJ  ) , up 0.8%. The health care company reported earnings yesterday that beat analyst expectations of $1.40 per share in earnings and revenue of $17.43 billion. Johnson & Johnson earned $1.44 per share on revenue of $17.5 billion. Health care companies' results are largely independent of the economy and more dependent on government regulations and company performance.

Johnson & Johnson stock has risen 19.7% so far this year, outpacing the Dow's 11.4% rise. In the company's earnings release, the company confirmed its guidance for full-year earnings of $5.35 to $5.45 per share. At today's price, that gives Johnson & Johnson's stock a forward P/E ratio of 15.7.

Is bigger really better?
Involved in everything from baby powder to biotech, Johnson & Johnson is criticized as being spread way too thin. If you want to know whether J&J is a bloated corporate whale or a well-diversified giant that's perfect for your portfolio, check out the Fool's new premium report outlining the Johnson & Johnson story in terms any investor can understand. Claim your copy by clicking here now

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2368527, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:40:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:55 PM
^DJI $18261.45 Down -131.01 -0.71%
^GSPC $2164.69 Down -12.49 -0.57%
S&P 500 INDEX CAPS Rating: No stars
BAC $15.52 Down -0.08 -0.51%
Bank of America CAPS Rating: ****
INTC $37.19 Down -0.36 -0.96%
Intel CAPS Rating: ****
JNJ $118.81 Down -0.65 -0.54%
Johnson and Johnso… CAPS Rating: *****