Find out if Johnson & Johnson is a stock you should buy or sell based upon recent news and its key financial metrics. Continue reading to learn how (JNJ), based on various investment factors, rates and whether it meets your investment requirements.
Stock News from Johnson & Johnson
Johnson & Johnson was at the 100th percentile in the Pharmaceuticals Industry’s market capitalization as of March 03, 2023.
Johnson & Johnson’s current price-earnings rate is 22.9. Johnson & Johnson has a trailing 12-month revenue of $94.9 billion and a 18.9% profit margin. Recent year-overyear sales growth was -4.4%. Analysts project that adjusted earnings will reach $10.514 per share in the current fiscal. Johnson & Johnson currently yields 2.9% on its dividend.
The Pharmaceuticals sub-industry has a bright future as the world returns back to normal and there is increased demand for electives. The pharmaceutical industry is dependent on COVID-19 medicines, oncology, immunology and other aspects. A COVID-19 vaccine may become a seasonal phenomenon if COVID-19 variations continue to emerge. This would make it very profitable for pharmaceutical companies because it would bring in repeat sales. Recent FDA approvals, including for a fourth booster dosage for people over 50, suggest that we might be moving in this way. Because of the low-cost, emerging market competition, generic drug manufacturers will likely continue to struggle. But policy risks are increasing despite this. Both parties want to make it more affordable for Americans, so lowering drug prices remains a bipartisan issue. This uncertainty is good for the long-term. However, there are more pressing issues on the political agenda that will make it unlikely that legislation will be passed soon. Through June 3, 2018, the S&P Pharmaceuticals Index had risen 1.5%, compared with a 13.6% decrease for the S&P Composite 1500 Index. In 2021 the S&P Pharmaceuticals Index experienced a gain 21.8% vs. 26.7% in the S&P Composite 1500.
Grading Johnson & Johnson Stock
It is important to evaluate the stock’s grade before you make a decision to sell, buy, or hold Johnson & Johnson shares. Stock evaluation requires accessing huge amounts of data. You will also need the knowledge and time required to analyze stock movements, read income statements, and make sense of financial ratios. Our A+ Investor data suite was created to assist individual investors in deciding whether to buy (JNJ).
Our proprietary stock grades can be accessed with A+ investor. These stock grades offer A-F grades to each of five key factors, including value, growth momentum, earnings revisions, quality and speed. This section will examine Johnson & Johnson’s stock grades in terms of quality, value, growth, and quality.
Johnson & Johnson Stock Value Grade
Successful stock investing requires you to buy low and sell high. Stock valuation is an important factor in stock selection. It is important to assess the stock’s fair market value or intrinsic value before you decide whether Johnson & Johnson stock will be a good buy or a bad sell.
Stocks that are likely to go up are typically stocks that have been undervalued. However, momentum investors may disagree.
Our A+ Value Grade for Investors is derived using a stock’s valuation score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score can be adjusted to include all six ratios. However, it cannot consider any of the ratios. Stocks must have a valid (nonnull) ratio, and the corresponding ranking for at most two of six valuation ratios to be given a Value Score.
Stocks that have a Value Score between 81 and 100 are considered to be deep value. Stocks that have a score between 60-80 and 81-100 can be considered value.
Johnson & Johnson’s Value Score is 23, which is Expensive.
Johnson & Johnson Stock Gain Grade
The foundation of growth investing involves finding stocks of companies that have experienced strong, consistent, and sustained growth. These growth prospects are expected to continue in the future.
In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components-consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations-must be determined. These three rank figures are added and the total is used to determine a company’s Growth Score. This will create an equal distribution in grades.
The bottom 20% of stock universe companies receive Growth Grades of F. These are Very Weak grades. However, the top 20% receive A grades which are Very Strong grades.
Johnson & Johnson’s Growth Score is 89. This is Very Strong.
Johnson & Johnson Stock Quality grade
Our A+ Investment Quality Grade, like the Value Grade comes from Our percentile rank of key metrics. The Quality Grade, in particular, is the percentile rank for the average of the percentile rankings of return on assets and return on invested capital.
The score can take into consideration all eight measures. If any of those eight measures are invalid, the score will consider the valid remaining measures. Stocks must have a valid (non null) measure and the appropriate ranking for at least four quality measures to earn a Quality Score.
The Quality Score can be used to evaluate the fundamental quality of a stock. Higher quality stocks have higher upside potential and less downside risk. Backtesting the Quality Grade has shown that stocks with higher grades outperformed those with lower grades in the time period 1998 to 2019.
Stocks with higher quality subcomponents scores receive higher grades (higher grades) and stock with lower scores for subcomponents scores receive worse grades (lower grades).
Johnson & Johnson has a Quality Rating of 92. This is Very Strong.
Johnson & Johnson Stock Momentum Grade
Momentum grades are used to identify stocks that have unusually high rates or return. Research has shown that stocks with high relative momentum tend outperform those with low momentum. Momentum is calculated by the price change of a stock relative to all other stocks over a given period.
We usually looks at the weighted relative strengths over the four preceding quarters. The relative price changes for the last four quarters are the weighted relative strengths rank. The latest quarterly price change gets a weighting 40% while each of the previous quarters get a weighting 20%.
Johnson & Johnson’s Momentum Score is 39. This score is Weak.
Other Johnson & Johnson Stock grades
A+ Investor provides grades for Estimate Reveals in addition to Value and Growth, Momentum and Quality.
The Earnings Estimates Revised Grade is based on the company’s last two quarters of earnings surprises. Sometimes, unexpected results lead to further surprises, or at the very least, continued sales growth. In general, however, this is not true. Our stock screening that tracks the top-rated companies (i.e., those with the highest revisions to their earnings estimates) has a 23.3% backtested year return, while a screen that tracks the ones with the lowest revisions has an annual return backtested at 5%.
When combined, these 1 key factors provide a comprehensive view of a stock. A+ Investor also allows you to check if Johnson & Johnson’s stock has passed any of our 60+ stock screens. Our stock screens have outperformed other markets since they were created.
Should I purchase Johnson & Johnson stock
Johnson & Johnson stock has a Value Grading of D, Growth Grades of A, Quality Grades of A, Momentum grade of D and Quality Grades of A.
Ultimately, your personal goals, risk tolerance, allocation and risk tolerance will determine whether or not you buy Johnson & Johnson stock. We will help you determine these and find the best investments for you.
Finally, it is important to compare the stock with others in the industry. Look at the table below to compare Johnson & Johnson stock against its peers. Click into any one of the following tickers to see their stock grades in terms of value, momentum and quality.
Johnson & Johnson Stock – Bottom Line
The information on how Johnson & Johnson stock has been rated can help you decide if this company is worth your investment. But, the best way to decide if Johnson & Johnson stock should be bought, sold, or held is by weighing a variety of metrics, ratios and U.S. Securities and Exchange Commission(SEC) reports.
We encourage investors to do their due diligence and research. There are also programs that will teach you how to invest on your own. You can become an effective manager of your own wealth without having to rely upon others. We is your trusted source for timeless articles about stock-picking and financial planning, as well as objective research and actionable analyses that will make you a better investor.
You can use our robust screening tools, such as A+ Investor, to help you make a decision about Johnson & Johnson stock.
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