Health is wealth, and when it comes to investing in the healthcare sector, few names stand as tall as Johnson & Johnson. As we look into February, investors are keen to know whether this pharmaceutical giant is a strong buy. With a solid return on equity of 20.89% and a forward dividend rate of $4.96, J&J continues to showcase its financial resilience. However, it's essential to weigh these factors against the broader market dynamics and company-specific developments before making any investment decisions. Johnson & Johnson is set to release its earnings today, with the fiscal year wrapping up on January 28, 2025. Despite some baby boomers showing little interest in the pharmaceutical sector, it's worth considering Johnson & Johnson as a potential investment. We'll explore why recent price movements hint at a possible rebound in February.
What is the right price you would pay to acquire a share of Johnson Johnson? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Johnson Johnson this year
Annual and quarterly reports issued by Johnson Johnson are formal
financial statements that are published yearly and quarterly and sent to Johnson stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Johnson Johnson often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Johnson Johnson Gross Profit
Johnson Johnson Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Johnson Johnson previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Johnson Johnson Gross Profit growth over the last 10 years. Please check Johnson Johnson's
gross profit and other
fundamental indicators for more details.
Is Johnson a risky opportunity?
Let's check the volatility. Johnson is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Johnson (USA Stocks:JNJ) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Johnson Johnson stock makes you a part-owner of that company.
Johnson Johnson Current Consensus
Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Johnson Johnson. The Johnson consensus assessment is calculated by taking the average estimates from all of the analysts covering Johnson Johnson.
| Strong Buy | 7 | 30.43 |
| Buy | 3 | 13.04 |
| Hold | 13 | 56.52 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Buy low, sell high is a timeless strategy, and Johnson & Johnson's current stock price might just offer that opportunity. With a 52-week low of 139.79 and a typical trading price around 145.21, the stock is trading closer to its lower range, suggesting potential for upward movement. The company's robust financials, including a net income of 13.33 billion and a healthy cash flow from operations of 22.79 billion, provide a solid foundation for growth. Additionally, a forward dividend rate of 4.96 offers an attractive yield for income-focused investors. Given these factors, JNJ could be a compelling buy for those looking to capitalize on its potential upside.
Another setback for Johnson Johnson stakeholders
Johnson & Johnson investors might be facing a challenge as the stock's Coefficient of Variation has dropped significantly to -772.92. This sharp decline indicates potential volatility and could suggest a future dip in the stock's price. It's crucial for investors to stay vigilant and keep a close eye on developments, as such a drastic change often signals increased risk and uncertainty. Despite this, Johnson & Johnson currently shows low volatility, with a skewness of 0.02 and kurtosis of 0.09. Understanding these volatility trends can help investors make informed decisions.
During bear markets, heightened volatility can affect the stock's price, causing concern among investors and prompting them to adjust their portfolios by exploring other financial options as prices decrease.Despite Johnson & Johnson's recent dip of over 2% even as the broader market climbs, the stock remains a compelling consideration for investors. With an analyst target price estimated at approximately $171.61, there's potential for upside from its current levels. The consensus among analysts is a "Buy," supported by the fact that there are 7 strong buy recommendations. This suggests confidence in the company's long-term prospects. While short-term fluctuations can be unsettling, Johnson & Johnson's robust fundamentals and strategic positioning in the healthcare sector make it a stock worth holding onto for those with a patient, long-term outlook..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Johnson Johnson. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com