Johnson & Johnson (JNJ) Positive Triggers Remain Out Of Sight?

Johnson & Johnson (NYSE:JNJ) is rated as Equal Weight by analysts at Barclays. The firm was pushed by the stock performance to change their PT view from $137 to $135 on January 23. Analysts at Goldman, shed their negative views on July 12 by lifting it fromSell to Neutral. Analysts at Bernstein, made their first call about the stock on June 27, recommending it is Mkt Perform.

JNJ stock dropped -1% in recent trade and currently has a stock-market value of $368.05B. The shares finished at $138.02, after trading as low as $137.94 earlier in the session. It hit an intraday high Thursday at $138.8. Trading activity significantly improved as the volume at ready counter increased to 8,445,633 shares versus 6,378,550 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 7,209,274 shares. The stock is now 16.35% above against its bear-market low of $118.62 on May 29, 2018. It has retreated -7.95% since it’s 52-week high of $148.99 reached in December. Now the market price is up 2.73% on the year and up 6.95% YTD.

Wall Street’s most bullish Johnson & Johnson (NYSE:JNJ) analysts are predicting the share price to blow past $160 per share during the next 12 months. The current median share price forecast by them is $147, suggesting that the stock could increase 6.51% in that time frame. The average price target of $145.07 calls for a nearly 5.11% increase in the stock price.

Johnson & Johnson (JNJ)’s 50 day simple moving average (SMA 50) price is $133.06 and its 200-day simple moving average (SMA 200) price is $133.7. The company’s stock currently has a total float of 2.66B shares. Its weekly volatility is hovering around 1.1% and felt 1.04% volatility in price over a month. On the upside, the share price will test short term resistance at around $138.57. On a downside, the stock is likely to find some support, which begins at $137.71. The failure to get near-term support could push it to $137.39.

When looking at valuations, Johnson & Johnson (JNJ) has a cheap P/E of 24.6x as compared to industry average of 29.3x. Moreover, it trades for 15.22 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 6.19x price/book and 4.51x price/sales. Compared to others, Johnson & Johnson is in a different league with regards to profitability, having net margins of 18.8%. To put some perspective around this, the industry’s average net margin is 8.81%. JNJ’s ROE is 24.4%, which is also considerably better than the industry’s ROE of 15.46%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 0.51.

Shares of JNJ have gained 6.7% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Johnson & Johnson (NYSE:JNJ) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. JNJ last reported earnings that exceeded expectations. The company raked in $1.97 per share, 111.83% change on the same period last year. That was better than consensus for $1.95. Revenue for the recent quarter stood at $20.39 billion, up 1% on last year and above the $20.2 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $19.25 billion to $19.93 billion, which should be compared with $20.22 billion generated last year. EPS is seen in a range of $1.96 to $2.52, against the $2.14 reported a year ago.