Johnson & Johnson (JNJ) shares are trading at lower $146.36 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $166.18.
To add more color to this target, the company’s high over the last year is $157.00 and the low is $109.16. Over the last 52 weeks, JNJ is up 7.27% while the S&P 500 is up 14.52%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, JNJ reported a profit of $14.11 billion. Johnson & Johnson also saw revenues increase to $21.08 billion. In addition, JNJ has free cash flow of $13.17 billion as of 09-2020. The company’s EBITDA came in at $6.28 billion which compares well with its peers.
JNJ booked profit margins of 21.00%, its Return on Equity (ROE) is 27.40%, and its Return on Assets is 10.60%. All told, it is clear that, JNJ needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. JNJ has a short ratio of 1.95 and outstanding shares of 2.63B.
JNJ has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 6.74 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.25. Johnson & Johnson JNJ also noted assets of $170.69 billion at the end of the last quarter. Investors should also keep an eye on sector updates as JNJ has historically followed its peers on positive news.
All told, Johnson & Johnson JNJ has strung together solid data and demonstrated underlying fundamentals. At its current valuation, JNJ represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Johnson & Johnson JNJ is now commanding a market cap of 387.35B and a float of 2.63B. JNJ is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of JNJ stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in JNJ, either long or short, and we have not been compensated for this article.