Johnson & Johnson (NYSE: JNJ) is one of the world’s largest pharmaceutical companies with a market capitalization of more than $400 billion. The company has a proven positive impact on the health and well-being of its customers and employees.
According to data collected by Value Line, the company has increased its earnings per share by 10.1% since 2009, when many other companies experienced steep declines and losses. J & J has also been increasing its dividend for ten years, making it the dividend king. J & J has done so by far more distance than many of its competitors in the pharmaceutical industry.
JNJ resilience stems from the fact that even in a recession, its customers can’t stop buying its products. This provides the company with steady earnings that allow it to increase its dividend each year, and it continues to perform well through 2020.
Although Johnson & Johnson expects conditions to worsen over the course of the year, the company remains highly profitable, with adjusted sales forecast to fall by about 1% by the middle of the year. Adjusted EPS increased 10% in the first quarter and revenue increased 3% to over $20 billion, while adjusted revenue (excluding non-GAAP measures) increased 5%.
Future growth will come primarily from J & J’s pharmaceutical pipeline, and pharmaceutical sales rose more than 10% in the last quarter. Global oncology sales will increase 22% in the first quarter to more than $3 billion, with future growth from new products expected to exceed $2 billion by the end of the year, compared to $1.5 billion last year.
By 2021, the company expects at least ten new products that could generate annual sales of $1 billion or more and more than a dozen in the pipeline.
High-quality stocks like JNJ typically have a well-deserved valuation premium, but it’s not a cheap stock. Based on its current price-to-earnings ratio of just 2.5, Johnson & Johnson is not only one of the most profitable companies in the US, but also the second most valuable company in America after Apple.
Stock Market Target Prices For JNJ Stock
Apr-28-20 Downgrade UBS Buy → Neutral $163 → $160
Apr-22-20 Upgrade BofA/Merrill Neutral → Buy $150 → $175
Mar-05-20 Initiated Citigroup Buy $163
Dec-19-19 Upgrade Barclays Equal Weight → Overweight $173
Dec-17-19 Upgrade Morgan Stanley Equal-Weight → Overweight $145 → $170
Nov-20-19 Initiated Cantor Fitzgerald Overweight $160
Oct-16-19 Upgrade Atlantic Equities Underweight → Neutral
Oct-11-19 Upgrade Bernstein Mkt Perform → Outperform $155
Jul-12-19 Resumed Credit Suisse Outperform $156
May-28-19 Initiated Goldman Buy
Jan-23-19 Reiterated Barclays Equal Weight $137 → $135
Jul-12-18 Upgrade Goldman Sell → Neutral
Jun-27-18 Initiated Bernstein Mkt Perform $129
Apr-23-18 Reiterated Citigroup Neutral $146 → $134
Apr-18-18 Reiterated Stifel Hold $145 → $135
Jan-24-18 Reiterated Stifel Hold $142 → $145
Jan-12-18 Reiterated Wells Fargo Outperform $155 → $160
Jan-02-18 Downgrade JP Morgan Overweight → Neutral
Oct-18-17 Reiterated Stifel Hold $140 → $142
Oct-18-17 Reiterated RBC Capital Mkts Outperform $144 → $147
1 Day JNJ Stock Moving Averages
Name Value Action
Exponential Moving Average (5) 149.24 Buy
Simple Moving Average (5) 149.39 Sell
Exponential Moving Average (10) 149.06 Buy
Simple Moving Average (10) 148.66 Buy
Exponential Moving Average (20) 148.33 Buy
Simple Moving Average (20) 149.85 Sell
Exponential Moving Average (30) 147.08 Buy
Simple Moving Average (30) 149.04 Buy
Exponential Moving Average (50) 145.23 Buy
Simple Moving Average (50) 140.90 Buy
Exponential Moving Average (100) 142.96 Buy
Simple Moving Average (100) 143.78 Buy
Exponential Moving Average (200) 140.53 Buy
Simple Moving Average (200) 138.48 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 150.27 Neutral
Volume Weighted Moving Average (20) 150.23 Sell
Hull Moving Average (9) 150.22 Sell
Ruchi has an Accounting and Graduate Degree in Business from the International School and Business and Media. She is exceptionally skilled in financial databases like Bloomberg, ThomsonOne,Datastream, CapitalIQ, and Factiva. Her focus at AlphaBetaStock.com is research breaking stocks and investment stories.