Is Johnson Johnson Stock a Good Investment?
Johnson Johnson Investment Advice | JNJ |
- Examine Johnson Johnson's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Johnson Johnson's leadership team and their track record. Good management can help Johnson Johnson navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Johnson Johnson's business and its evolving consumer preferences.
- Compare Johnson Johnson's performance and market position to its competitors. Analyze how Johnson Johnson is positioned in terms of product offerings, innovation, and market share.
- Check if Johnson Johnson pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Johnson Johnson's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Johnson Johnson stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Johnson Johnson is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Johnson Johnson Stock
Researching Johnson Johnson's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 73.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.97. Johnson Johnson recorded earning per share (EPS) of 6.61. The entity last dividend was issued on the 27th of August 2024. The firm had 2:1 split on the 13th of June 2001.
To determine if Johnson Johnson is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Johnson Johnson's research are outlined below:
| Johnson Johnson has a strong financial position based on the latest SEC filings | |
| About 73.0% of the company shares are owned by institutional investors | |
| On 10th of September 2024 Johnson Johnson paid $ 1.24 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Stock Yards Bank Trust Co. Reduces Stock Position in Johnson Johnson |
Johnson Johnson Quarterly Gross Profit |
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Johnson Johnson uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Johnson Johnson. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Johnson Johnson's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 16th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Johnson Johnson's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Johnson Johnson's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-04-17 | 2007-03-31 | 1.05 | 1.16 | 0.11 | 10 | ||
2020-07-16 | 2020-06-30 | 1.49 | 1.67 | 0.18 | 12 | ||
2020-10-13 | 2020-09-30 | 1.98 | 2.2 | 0.22 | 11 | ||
2021-10-19 | 2021-09-30 | 2.35 | 2.6 | 0.25 | 10 | ||
2021-04-20 | 2021-03-31 | 2.34 | 2.59 | 0.25 | 10 | ||
2020-04-14 | 2020-03-31 | 2 | 2.3 | 0.3 | 15 |
Know Johnson Johnson's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Johnson Johnson is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Johnson Johnson backward and forwards among themselves. Johnson Johnson's institutional investor refers to the entity that pools money to purchase Johnson Johnson's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of America Corp | 2024-06-30 | 24.5 M | Legal & General Group Plc | 2024-06-30 | 23.3 M | Bank Of New York Mellon Corp | 2024-06-30 | 21.7 M | Massachusetts Financial Services Company | 2024-06-30 | 18.8 M | Wells Fargo & Co | 2024-06-30 | 18.1 M | Ubs Asset Mgmt Americas Inc | 2024-06-30 | 18 M | Charles Schwab Investment Management Inc | 2024-06-30 | 17.5 M | Fmr Inc | 2024-06-30 | 17.1 M | Amvescap Plc. | 2024-06-30 | 16.7 M | Vanguard Group Inc | 2024-06-30 | 229 M | Blackrock Inc | 2024-06-30 | 198.2 M |
Johnson Johnson's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 399.96 B.Market Cap |
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Johnson Johnson's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.36 | 0.38 | |
| Return On Capital Employed | 0.20 | 0.25 | |
| Return On Assets | 0.21 | 0.14 | |
| Return On Equity | 0.51 | 0.54 |
Determining Johnson Johnson's profitability involves analyzing its financial statements and using various financial metrics to determine if Johnson Johnson is a good buy. For example, gross profit margin measures Johnson Johnson's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Johnson Johnson's profitability and make more informed investment decisions.
Johnson Johnson's Earnings Breakdown by Geography
Evaluate Johnson Johnson's management efficiency
Johnson Johnson has Return on Asset of 0.081 % which means that on every $100 spent on assets, it made $0.081 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2215 %, implying that it generated $0.2215 on every 100 dollars invested. Johnson Johnson's management efficiency ratios could be used to measure how well Johnson Johnson manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Johnson Johnson's Return On Tangible Assets are relatively stable compared to the past year. Return On Capital Employed is expected to hike to 0.25 this year, although the value of Return On Assets will most likely fall to 0.14. At this time, Johnson Johnson's Total Current Liabilities is relatively stable compared to the past year. Liabilities And Stockholders Equity is expected to hike to about 175.9 B this year, although the value of Change To Liabilities is projected to rise to (962.5 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 27.15 | 28.50 | |
| Tangible Book Value Per Share | (0.77) | (0.73) | |
| Enterprise Value Over EBITDA | 12.52 | 10.44 | |
| Price Book Value Ratio | 5.77 | 5.86 | |
| Enterprise Value Multiple | 12.52 | 10.44 | |
| Price Fair Value | 5.77 | 5.86 | |
| Enterprise Value | 176.9 B | 185.8 B |
The analysis of Johnson Johnson's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Johnson Johnson's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Johnson Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.0297 | Forward Dividend Yield 0.0297 | Forward Dividend Rate 4.96 | Beta 0.519 |
Basic technical analysis of Johnson Stock
As of the 19th of September, Johnson Johnson retains the Risk Adjusted Performance of 0.167, downside deviation of 0.9741, and Market Risk Adjusted Performance of 0.8867. Johnson Johnson technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.Johnson Johnson's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Johnson Johnson insiders, such as employees or executives, is commonly permitted as long as it does not rely on Johnson Johnson's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Johnson Johnson insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ronald Williams over a year ago Acquisition by Ronald Williams of 1428 shares of Johnson Johnson subject to Rule 16b-3 |
Johnson Johnson's Outstanding Corporate Bonds
Johnson Johnson issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Johnson Johnson uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Johnson bonds can be classified according to their maturity, which is the date when Johnson Johnson has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US478111AC18 Corp BondUS478111AC18 | View | |
| US478115AF52 Corp BondUS478115AF52 | View | |
| US478115AB49 Corp BondUS478115AB49 | View | |
| US478165AG84 Corp BondUS478165AG84 | View | |
| US478165AH67 Corp BondUS478165AH67 | View | |
| JOHNSON JOHNSON 695 Corp BondUS478160AJ37 | View | |
| JOHNSON JOHNSON 495 Corp BondUS478160AL82 | View | |
| JOHNSON JOHNSON 595 Corp BondUS478160AN49 | View |
Understand Johnson Johnson's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Johnson Johnson's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.167 | |||
| Market Risk Adjusted Performance | 0.8867 | |||
| Mean Deviation | 0.7718 | |||
| Semi Deviation | 0.6718 | |||
| Downside Deviation | 0.9741 | |||
| Coefficient Of Variation | 485.0 | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.12 | |||
| Information Ratio | 0.0988 | |||
| Jensen Alpha | 0.1833 | |||
| Total Risk Alpha | 0.0709 | |||
| Sortino Ratio | 0.1071 | |||
| Treynor Ratio | 0.8767 | |||
| Maximum Drawdown | 5.84 | |||
| Value At Risk | (1.42) | |||
| Potential Upside | 2.1 | |||
| Downside Variance | 0.9488 | |||
| Semi Variance | 0.4513 | |||
| Expected Short fall | (0.84) | |||
| Skewness | 0.4791 | |||
| Kurtosis | 1.15 |
| Risk Adjusted Performance | 0.167 | |||
| Market Risk Adjusted Performance | 0.8867 | |||
| Mean Deviation | 0.7718 | |||
| Semi Deviation | 0.6718 | |||
| Downside Deviation | 0.9741 | |||
| Coefficient Of Variation | 485.0 | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.12 | |||
| Information Ratio | 0.0988 | |||
| Jensen Alpha | 0.1833 | |||
| Total Risk Alpha | 0.0709 | |||
| Sortino Ratio | 0.1071 | |||
| Treynor Ratio | 0.8767 | |||
| Maximum Drawdown | 5.84 | |||
| Value At Risk | (1.42) | |||
| Potential Upside | 2.1 | |||
| Downside Variance | 0.9488 | |||
| Semi Variance | 0.4513 | |||
| Expected Short fall | (0.84) | |||
| Skewness | 0.4791 | |||
| Kurtosis | 1.15 |
Consider Johnson Johnson's intraday indicators
Johnson Johnson intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Johnson Johnson stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 73214.48 | |||
| Daily Balance Of Power | (0.35) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 167.05 | |||
| Day Typical Price | 166.75 | |||
| Price Action Indicator | (1.35) | |||
| Period Momentum Indicator | (0.92) |
Johnson Johnson Corporate Filings
F4 | 12th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 10th of September 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 29th of August 2024 Other Reports | ViewVerify | |
| 9th of August 2024 Other Reports | ViewVerify |
Johnson Stock media impact
Far too much social signal, news, headlines, and media speculation about Johnson Johnson that are available to investors today. That information is available publicly through Johnson media outlets and privately through word of mouth or via Johnson internal channels. However, regardless of the origin, that massive amount of Johnson data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Johnson Johnson news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Johnson Johnson relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Johnson Johnson's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Johnson Johnson alpha.
Johnson Johnson Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Johnson Johnson can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Johnson Johnson Historical Investor Sentiment
Investor biases related to Johnson Johnson's public news can be used to forecast risks associated with an investment in Johnson. The trend in average sentiment can be used to explain how an investor holding Johnson can time the market purely based on public headlines and social activities around Johnson Johnson. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Johnson Johnson's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Johnson Johnson and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Johnson Johnson news discussions. The higher the estimate score, the more favorable the investor's outlook on Johnson Johnson.
Johnson Johnson Maximum Pain Price across 2024-09-20 Option Contracts
Johnson Johnson's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Johnson Johnson close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Johnson Johnson's options.
Johnson Johnson Corporate Directors
| Jennifer Doudna | Independent Director | Profile | |
| Marillyn Hewson | Independent Director | Profile | |
| Mary Beckerle | Independent Director | Profile | |
| Darius Adamczyk | Independent Director | Profile |
Additional Information and Resources on Investing in Johnson Stock
When determining whether Johnson Johnson is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Johnson Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Johnson Johnson Stock. Highlighted below are key reports to facilitate an investment decision about Johnson Johnson Stock:Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Johnson Johnson. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For more information on how to buy Johnson Stock please use our How to buy in Johnson Stock guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Johnson Johnson. If investors know Johnson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Johnson Johnson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.02) | Dividend Share 4.81 | Earnings Share 6.61 | Revenue Per Share 35.536 | Quarterly Revenue Growth 0.043 |
The market value of Johnson Johnson is measured differently than its book value, which is the value of Johnson that is recorded on the company's balance sheet. Investors also form their own opinion of Johnson Johnson's value that differs from its market value or its book value, called intrinsic value, which is Johnson Johnson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Johnson Johnson's market value can be influenced by many factors that don't directly affect Johnson Johnson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Johnson Johnson's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Johnson Johnson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Johnson Johnson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.