Johnson & Johnson (JNJ): Low Growth But Reasonable Valuations And Strong Capital Position

The median price target for Johnson & Johnson, (JNJ) over the next 12 months is $150, which means that it could rise by 15.15% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $124 for the stock which means it could rise by -4.81%. Most analysts believe that the company’s stock has the potential to rise by 29.74% or more. For Johnson & Johnson to record further gain analysts believe that the company has to hit $169 price target. The high price target for JNJ for next 12 months currently stands at $169. This means that the highest 12 months price target is 29.74% above its last closing price. For most investors, the -2.37% change in the share price could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed August 14, 2019 trading at $130.26 which saw downtrend of 0.94% since the beginning of 2019. The price of the stock has risen by 14.52% from average 12-month price target of $149.18 expected by the analysts.

A look at the JNJ stock today shows that it has gained 0.03% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of Johnson & Johnson (NYSE:JNJ). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Johnson & Johnson (JNJ) is 2.3 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 10 times while it has been rated as a Hold 8 times. The 52-week high price for JNJ is $148.99 which is attained on December 04 while its 52-week low currently stands at $121 and was reached on December 24. At the moment, the stock is trading $-5.44 below its YTD moving average set at $135.7.

Moving on, Johnson & Johnson (JNJ) last released its earnings for the June 2019 quarter of the fiscal year. The company performed decently over the past three months, with its earnings up 23% year-over-year at $2.58. The company brought a surprise of 5 as analysts were predicting $2.46 per share. The revenue generated by Johnson & Johnson in the June 2019 quarter declined by -1% to reach $20.56 billion. This is low compared to the $20.83 billion it recorded in the same quarter last year. To see what traders should watch in its September 2019 financial results, analysts have consensus earnings per share of $2 which is lower than the $2.05 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 6.02%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 6.74 % could be achieved. The company has also recorded a revenue of $81.33 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Johnson & Johnson (NYSE:JNJ) is now trading at 21.6X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 33.85X while the industry average stands at 29.73X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Johnson & Johnson was able to achieve an EPS of $6.03 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Wednesday, August 14 of 2019, the 14-day Absolute ATR (Average True Range) for JNJ moved by $2.13. Over the past seven days, the stock’s average daily volatility stood at 1.4%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Johnson & Johnson’s trading volume has recently moved to 7.71 million, which is compared with the average daily volume of 7.44 million shares.

The daily chart for JNJ, points out that the company has recorded -3.12% losses over the past six months. However, it is still 7.65% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 0.04% though it is -0.57% below its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has dropped by -4.3% while it is down -4.72% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of JNJ reveals that it has lost some grounds as it ended Wednesday with a -1.69% fall over the past 30 days.