Johnson & Johnson (JNJ): Great Short-Term Profit, Now Exercise Caution

Johnson & Johnson’s stock (NYSE:JNJ) has been rated as Overweight by Cantor Fitzgerald. This latest rating was contained in a recent research note published by the firm on November 20, 2019 and has set a $160 price target for the stock. Some experts on Wall Street have also posted a report on Johnson & Johnson (JNJ) stock.

Atlantic Equities rated the stock as a Neutral in a research noted published on October 16, 2019. Bernstein rated the stock as a Outperform in a research note published on October 11, 2019.

As it stands, a total of 19 analysts are covering JNJ stock, with 9 of them rating it as a Buy while 2 of them rating it as Overweight. 8 analysts meanwhile advised investors to Hold, 0 rated it as Underweight while the 0 rated it as a Sell. A look at the overall ratings means that Johnson & Johnson (JNJ) stock has an average rating of Overweight.

Johnson & Johnson (JNJ) which is currently valued at 362.54 billion, with the company publishing its last earnings report on 10/15/2019, for the recent quarter of 2019. In that quarter, the company recorded a revenue of 20.77 billion, which was lower than the forecast of 20.98 billion made by some analysts. For that same quarter, Johnson & Johnson (JNJ) posted $1.97 earnings per share (EPS) which was above the analyst consensus estimate of $1.95 by $0.02, which represents an increase by 1.00%.

The stock market has a tendency to become sophisticated sometimes, even for seasoned investors and traders. Even when a trader got what he/she had expected, the market sometimes decides to move in the opposite direction. This volatility sometimes leads to some traders doubting and second-guessing their moves. This is why getting to know historical price performance, as well as both long-term and short-term trends, is very important. Over the past one week, JNJ price has surged by 0.77%. A look at its price performance over the past three months sees the stock go up by 7.11%, while it has gain 4.60% over the past six months and -6.11% since the start of the year.

Let us now look at some of its likely support and resistance level. Recent research on Johnson & Johnson (JNJ) has seen its stock trading -0.82% below its three-month high price. A look at the other side also sees stock trading +9.03% above its three-month low. A wider look sees JNJ trading -0.82% below its 52-week high and 13.63% above from its 52-week low price.

Shareholders of the company sometimes like to find out how their investments are growing. Johnson & Johnson (JNJ) has so far given an ROE of 23.80%. When the ROE is low, it means that the company isn’t generating enough profits. The Return on Assets (ROA) ratio meanwhile is an indication of how profitable a company is relative to the total asset it owns. Johnson & Johnson (JNJ)’s ROA at the moment stands at 9.20%. Any company that is managing its assets better will have a higher return while one that manages assets poorly would result in low returns.

Johnson & Johnson (JNJ) has a return on investment (ROI) of 17.00%. The higher the ROI percentage, the higher the profit exceeds the costs, thus analysts consider such investments as an overall gain. A negative ROI, however, means that the cost is higher than the profits, a scenario analysts consider as a net loss.

Let us now take a look at Johnson & Johnson (JNJ)’s trading volatility. Its 7-day volatility is around 1.23%, while it has a monthly volatility of 1.35%. JNJ has an ATR (Average True Range) of 1.96 and a beta factor of 0.71. The volatility of a stock is an indication of the stock’s drop or gain in case the wider market drops or surges. A beta score higher than 1 means that a stock is highly volatile while below 1 means that the volatility of a stock is low.

The price of JNJ moved down by -$0.26 during the normal trading session on Friday to trade at $137.49. The Johnson & Johnson (JNJ) stock has a trading volume of 3.28 million shares, which is low, compared to its average daily volume of 7.40M shares.