Shares of global health care giant Johnson & Johnson (JNJ) - Get Report didn't perform in 2015 the way investors hoped they would. In a year when health care stocks climbed by an average of more than 5%, J&J ended 2015 down almost 2%, trailing both the S&P 500 (SPX) index and the Health Care Select Sector SPDR Fund (XLV) - Get Report .

But things are about to change.

Johnson & Johnson will report fourth-quarter fiscal 2015 earnings results before the opening bell Tuesday. New Jersey-based Johnson & Johnson is one of several health care stocks to keep on your watch list for 2016.

For the quarter that ended December, the average analyst earnings-per-share estimate anticipates $1.42 a share on revenue of $17.90 billion, compared to the year-ago quarter when the company earned $1.37 a share on revenue of $18.25 billion. For the full year, earnings are projected to reach $6.18 a share, down from $6.39 a share in the year-ago period, while revenue of $70.16 billion would mark a decline of 5.6%.

The company has a broad reach in the diversified health care market, which makes it a one-stop shop for areas like medical devices, pharmaceuticals and consumer health care. Johnson & Johnson has a competitive advantage over smaller competitors, too. It has strong brand awareness and pricing power. Those allow Johnson & Johnson to keep its profit margins climbing to consistently return value to shareholders.

Industry-leading drugs like Remicade and Stelara drive its pharmaceuticals business to account for roughly 40% of its sales. And Johnson & Johnson continues to build on a strong pipeline of potential blockbuster drugs -- some currently in late-stage development -- to bridge the growth gap for when sales of its current drugs begin to slow.

The company is strong in areas like medical devices, neurosciences and infectious drugs. Those areas have helped Johnson & Johnson to beat Wall Street's earnings estimates in all four reporting periods in 2015. With tons of momentum in its sails, and the strength of its core business, Johnson & Johnson looks unlikely to miss on earnings on Tuesday.

What do you get for this level of value? With J&J shares trading at around $95, the stock is priced at just 14 times fiscal 2016 consensus estimates of $6.40 a share -- three points lower than the S&P 500 index.

This means that J&J, which has a consensus buy rating, is relatively cheap. Apply a 17 multiple to those estimates and J&J stock would be priced today at around $108, or 14% higher. Then add in its 75-cent quarterly dividend, yielding 3% annually -- a full percentage point higher than the average stock in the S&P 500.

That's excellent value.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.