JNJ Should I Buy
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Johnson & Johnson (JNJ) is not a strong buy for a beginner, long-term investor at this moment. While the company has strong financials, positive analyst sentiment, and robust product cycles, the stock is currently overbought based on technical indicators, with insider selling and cautious congressional trading activity. Waiting for a better entry point is advisable.
The stock's technical indicators show a bullish trend with MACD above 0 and expanding, bullish moving averages (SMA_5 > SMA_20 > SMA_200), and RSI at 90.543 indicating overbought conditions. The current price is near resistance levels (R1: 244.115, R2: 249.075), suggesting limited immediate upside potential.
Strong Q4 2025 financial performance with revenue up 9.08% YoY and net income up 49.11% YoY.
Positive analyst sentiment with multiple price target increases and upgrades citing robust new product cycles.
Momentum in Pharma and MedTech divisions expected to continue through 2026.
Insider selling has increased significantly (3757.91% over the last month).
Congress members have been selling the stock, with no purchase transactions in the last 90 days.
Overbought technical conditions and limited short-term upside potential.
Legal uncertainties related to the talc MDL case.
In Q4 2025, Johnson & Johnson reported revenue of $24.56 billion (up 9.08% YoY), net income of $5.12 billion (up 49.11% YoY), and EPS of $2.10 (up 48.94% YoY). However, gross margin dropped slightly to 67.56%, down 1.29% YoY.
Analysts have a generally positive outlook on JNJ, with multiple upgrades and price target increases. Recent price targets range from $220 to $265, with analysts citing strong product cycles, solid Q4 performance, and manageable legal risks. However, some maintain a neutral stance due to the stock's premium valuation.
