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- Johnson & Johnson (JNJ) has a diversified business model that makes it resilient through economic cycles.
- JNJ is trading at new all-time highs.
- The stock maintains a 100% “Buy” technical opinion from Barchart.
- Analyst sentiment is mixed. JNJ has many “Strong Buy” opinions, but some analysts consider JNJ overvalued.
Today’s Featured Stock
Valued at $565 billion, Johnson & Johnson’s (JNJ) biggest strength is its diversified business model. It operates through pharmaceuticals and medical devices divisions. Its diversification helps it to withstand economic cycles more effectively.
The company has several drugs covering a broad range of areas such as neuroscience, cardiovascular and metabolic health, immunology, oncology, pulmonary hypertension, and infectious diseases and vaccines. It also offers products in the orthopedics, surgery, interventional solutions, and vision markets.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. JNJ checks those boxes. Since the Trend Seeker issued a new “Buy” on Nov. 11, shares are up 22.94%.
Barchart Technical Indicators for Johnson & Johnson
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Johnson & Johnson scored an all-time high of $240 on Feb. 6.
- JNJ has a Weighted Alpha of +65.98.
- Johnson & Johnson has a 100% “Buy” opinion from Barchart.
- The stock has gained 55.99% over the past 52 weeks.
- JNJ has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $239.41 with a 50-day moving average of $213.25.
- Johnson & Johnson has made 16 new highs and is up 16.93% over the past month.
- Relative Strength Index (RSI) is at 86.26.
- There’s a technical support level around $235.33.
Don’t Forget the Fundamentals
- $565 billion market capitalization.
- 21.71x trailing price-earnings ratio.
- 2.18% dividend yield.
- Revenue is predicted to grow 6.78% this year and another 5.15% next year.
- Earnings are estimated to increase 6.90% this year and an additional 8.76% next year.
Analyst and Investor Sentiment on Johnson & Johnson
- The Wall Street analysts followed by Barchart give the stock 13 “Strong Buy,” 3 “Moderate Buy,” and 10 “Hold” opinions with price targets between $165 and $265.
- Value Line rates the stock “Above Average” with price targets from $156 to $247.
- CFRA’s MarketScope rates the stock a “Hold.”
- Morningstar thinks the stock is 28% overvalued.
- 21,444 investors following the stock on Motley Fool think this stock will beat the market while 1,276 think it won’t.
- 428,000 investors are following the stock on Seeking Alpha, but it does not rate it.
- Short interest is 0.89% of the float with 2.43 days to cover the float.
The Bottom Line on Johnson & Johnson
This is one of the most widely covered stocks on Wall Street. Value Line rates the stock in the 100th percentile for Stock Price Stability.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
