Johnson & Johnson reports fourth-quarter earnings

What's Happening With JNJ View more about JNJ >

Johnson & Johnson (JNJ) is expected to report its fourth-quarter results before the market open January 22. The consensus calls for earnings of $1.95 per share, versus $1.74 during the same period last year. The stock has appreciated 6.7% since the end of June.

Technical Analysis

JNJ was recently trading at $129.92 down $19.07 from its 12-month high and $11.30 above its 12-month low. InvestorsObserver’s Stock Score Report gives JNJ a 10 long-term technical score and a 58 short-term technical score. The stock has recent support above $123 and recent resistance below $133. Of the 12 analysts who cover the stock 4 rate it Strong Buy, 2 rate it Buy, 6 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, JNJ gets a score of 38 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

JNJ was one of the market’s standout stocks in the second half of 2018, but the stock took a big hit in December when the overall market corrected. The strong gains the stock had enjoyed leading up to the correction pushed the valuation a bit high, but shares look much more reasonably priced now with a forward P/E of 15. Earnings are up 8.4% per annum over the last five years, and looking ahead analysts forecast average annual earnings growth of 7.8% for the next five years. Last quarter the company topped estimates on the top and bottom line, and the street expects another positive earnings surprise this quarter with a whisper number of $1.23 for the quarter. Overall economic conditions remain favorable for the company, and the valuation and forecast earnings growth justifies a nice rally if the company is able to top estimates as expected. Analysts have an average price target of $145.62 on the stock.

JNJ
About Johnson & Johnson

Johnson & Johnson is the world's largest and most diverse healthcare company. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. Geographically, close to half of total revenue is generated in the United States.

  • Last Price:
    $131.75
  • Previous Close:
    $130.11
  • Change:
    $1.64 (1.26%)
  • Open:
    $131.00
  • Volume:
    7,980,602
  • Average Volume (100 Day):
    7,256,788
  • Market Capitalization:
    $347.7 B
  • Day's Range:
    $130.29 - $132.00
  • Dividend Yield:
    2.92%
  • 52-week Range:
    $149 - $121.00
  • P-E:
    21.30
  • EPS:
    $6.03
  • Earnings Date:
    10/15/19
  • Ex Dividend Date:
    8/26/19
  • Sector:
    Healthcare
  • Industry:
    Drug Manufacturers - Major
  • Analyst Average Recommendation:
    Moderate Buy

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