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Johnson & Johnson (JNJ), with a market cap of $377.3 billion, is a leading healthcare company based in New Brunswick, New Jersey. It operates across pharmaceuticals, medical devices, and consumer products, leveraging a diversified business model, strong R&D investment, and a global presence in numerous therapeutic and consumer health markets.
Shares of the leading pharmaceutical company have underperformed the broader market over the past 52 weeks. JNJ has surged 3.9% during this period, contrasting with the S&P 500 Index's ($SPX) robust rally of 36.4%. In 2024, JNJ shares dropped marginally, lagging behind SPX's 25.2% gain on a YTD basis.
Zooming in further, JNJ's performance trails behind the iShares U.S. Pharmaceuticals ETF (IHE), which has reported gains of 19.7% over the past 52 weeks and a 12.5% increase on a YTD basis.
On Oct. 15, JNJ’s shares rose 1.6% after it announced its Q3 earnings report. It reported an adjusted profit of $2.42 per share, beating Wall Street's expectation of $2.22. Its revenue reached $22.47 billion, exceeding forecasts of $22.19 billion.
For the current fiscal year, ending in December, analysts expect JNJ's EPS to grow marginally year over year to $9.94. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
The consensus rating among the 20 analysts covering the stock is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, two “Moderate Buys,” and 12 “Holds.”
This configuration has been consistent over the past months.
On Nov. 6, Guggenheim raised Johnson & Johnson's price target to $162 from $156 and maintained a “Neutral” rating. This update follows J&J's Q3 results and revised FY24 guidance, with the higher target reflecting slight sales estimate increases in the Innovative Medicines segment.
The mean price target of $175.30 represents a premium of 11.8% to JNJ's current levels. The Street-high price target of $215 implies a modest potential upside of 37.2% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
