Stock Price & Analysis

Analysis and Insights

Technical Analysis:

Johnson & Johnson (JNJ) has shown a bullish trend recently, with the stock forming a golden cross, a classic bullish signal. The 50-day simple moving average has crossed above the 200-day simple moving average, indicating strengthening momentum. However, the stock has faced resistance at $168.75, pulling back after two rejections.

Fundamental Analysis:

JNJ has announced a significant $55 billion investment in U.S. manufacturing, R&D, and technology over the next four years, marking a 25% increase from previous levels. This investment is expected to enhance job creation and accelerate drug discovery, positioning the company for long-term growth.

The stock has received a high rating of 81% from Validea's Multi-Factor Investor model, indicating strong fundamentals and valuation in the Biotechnology & Drugs industry.

Analyst Sentiment:

Analysts have a mixed outlook, with a consensus rating of "Moderate Buy" and an average price target of $168.27, suggesting a 2.84% upside from current levels.

Conclusion:

Buy JNJ stock as its bullish technicals and strong fundamentals, supported by significant investments and positive analyst sentiment, indicate potential for long-term growth.

Price Prediction for JNJ Stock in 2025

The price prediction for Johnson & Johnson (JNJ) stock in 2025 is $168-$170. This forecast is supported by the company's strong pipeline growth, recent strategic acquisitions, and positive analyst sentiment.

The S1 support level for JNJ Stock is $155.48 ,The R1 resistant level for JNJ Stock is $165.8.

As of the end of day on 2025-04-02, the price of JNJ Stock was $153.35.

The target price for JNJ Stock according to analyst rating is 167.36, with the highest price target at 185.00 and the lowest at 152.00. Analysts have a Moderate Buy rating on JNJ Stock overall.

The market cap of JNJ is $369.3B.

Analysis and Insights

Johnson & Johnson (JNJ) appears to be overvalued based on several key metrics and market conditions. Here's a concise breakdown:

1. Valuation Metrics:

   • P/E Ratio: JNJ's P/E ratio ranges from 23.5 to 26.68, higher than the industry average, suggesting elevated valuations.
   • EV/EBITDA: The ratio is between 11.47 and 12.65, moderate but not overly concerning.
   • Price-to-Sales (P/S): At 4.15 to 4.63, this is higher than historical norms, indicating potential overvaluation.
   • Price-to-Book (P/B): The ratio of 3.96 to 5.54 is above the industry average, further signaling overvaluation.

2. Dividend Yield:

   • The dividend yield of 3.01% to 3.42% is attractive but does not offset the high valuation.

3. Financial Health:

   • JNJ has strong revenue growth and solid margins, with an ROE of 20%, reflecting efficient equity use.

4. Market Sentiment:

   • The broader U.S. market is overvalued, with the Buffett Indicator and P/E Model indicating high valuations.

5. Recent News:

   • JNJ's $55 billion investment plan is positive, but the discontinuation of its Phase 3 VENTURA program due to insufficient efficacy raises concerns.

6. Analyst Ratings:

   • Mixed ratings, with a consensus Moderate Buy and an average price target of $168, implying modest upside.

Conclusion

JNJ is overvalued due to high valuation metrics and broader market conditions. While it has strong fundamentals, investors should exercise caution.

Johnson & Johnson, through its subsidiaries, is engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s primary focus is products related to human health and well-being. It operates through two segments: Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, and cardiovascular and metabolic diseases. Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. The MedTech segment includes a broad portfolio of products used in the orthopedic, surgery, interventional solutions, and vision fields. These products are distributed to wholesalers, hospitals, and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics.

Johnson & Johnson (JNJ) stock is predicted to reach $200 by 2030, driven by its strong R&D pipeline and increased U.S. investments in manufacturing and innovation. The company's diversified healthcare portfolio and consistent cash flow generation support long-term growth.

JNJ has a total of 131900 employees.