With a market cap of $394.2 billion, New Brunswick, New Jersey-based Johnson & Johnson (JNJ) is a global healthcare company with a diversified business model spanning pharmaceuticals, medical devices, and consumer health products. Its two main segments, Innovative Medicine and MedTech, offer a wide range of products, from prescription drugs in immunology, oncology, and infectious diseases to medical devices for surgery, orthopedics, and cardiovascular care.
Companies valued at $200 billion or more are generally considered “mega-cap” stocks and Johnson & Johnson fits this criterion perfectly. The company invests heavily in research and development, maintaining one of the largest R&D budgets in the pharmaceutical industry. J&J’s consumer health division includes well-known brands in baby care, skin health, oral care, and over-the-counter medicines.
The world's biggest maker of healthcare products has seen a 3.3% decline from its 52-week high of $168.85. Over the past three months, its shares have risen 5.1%, outperforming the broader Dow Jones Industrials Average's ($DOWI) 2.9% decline during the same period.
Longer term, JNJ is up 12.9% on a YTD basis, outpacing DOWI's 2.1% return. However, shares of Johnson & Johnson have gained 1.1% over the past 52 weeks, lagging behind Dow Jones’ 11.5% rise over the same time frame.
However, JNJ has exhibited a bullish trend, consistently trading above its 50-day moving average since late January. Additionally, the stock has maintained levels above its 200-day moving average since early February.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $2.04 and revenue of $22.5 billion, JNJ shares fell 1.9% on Jan. 22 due to disappointing 2025 sales guidance. The company's projected 2025 revenue range of $89.2 billion - $90 billion fell short of the consensus estimate. Additionally, MedTech segment sales of $8.2 billion missed estimates, with management citing continued headwinds in China from the volume-based procurement (VBP) program and competitive pressures.
Moreover, JNJ has underperformed its rival, Eli Lilly and Company (LLY), with Eli Lilly experiencing a 16.9% YTD rise and a 19.1% gain over the past 52 weeks.
Analysts are moderately optimistic about JNJ's prospects, despite its underperformance compared to broader markets over the past year. With a consensus "Moderate Buy" rating from 22 analysts, the mean price target of $169.09 indicates a 3.7% premium to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
