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.
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DetailsIs 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..
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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.
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