Johnson & Johnson [NYSE:JNJ] is flashing a current price of $149.15. On Wednesday, the company’s daily low is at $145.81 as the high is reaching $148.23.
The price per sales of 4.87 and price per cash flow of 53.88. The company is also booking 5.58 earnings per share.
JNJ’s next earning date is 10/13/2020. The company has price per sales of 4.87 and price per cash flow of 53.88. The company is also booking 5.58 earnings per share.
Wait and see
Holding a Market Cap of $392.22 billion, Johnson & Johnson has seen a trading range over the last year of $109.16-$157.00.
For the last five days, JNJ is down from its last closing price. The average shares trading hands each day is 6.02M, with average 10-day volume coming in at 6.09 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for JNJ. When we apply the Elder Force Index to Johnson & Johnson, we are seeing an Elder Force Indicator number of 1459456.06.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. JNJ is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 16.36. Moreover, the company’s enterprise value has gone from $379.75B to $353.59B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, JNJ made a profit of 11.76 billion. Johnson & Johnson also saw quarter revenue growth year over year of 0.71%. In addition, the company has operating cash flow of $20.74 billion.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 147.61 compared to the 50-day moving average of 148.89. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. JNJ currently holds a 9-day RSI of 58.22%, while 100-day RSI stands at 51.63%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. JNJ’s 9-day MACD is 0.25 and the company’s 100-day MACD stands at 0.95.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.08% by insiders and 70.25% by institutions. Regarding institutional holdings, Vanguard Group, Inc. (The) owns 8.80%, while the second top holder, Blackrock Inc., currently owns 7.36%.
Over the last six months, insiders have sold 16,115 with the most recent transaction from Wengel Kathryn E, EVP, Chief GSC Officer, with a sell at price 153.52 per share.
Conclusion
Overall, the recommended rating for JNJ is Strong Buy. Currently, the company has 15 analysts watching the stock, and the average quarterly earnings estimate is 1.96. Quarterly revenue estimates are averaging 20.06B with the high estimate reaching 20.53B and the low at 19.33B.
To review, the current 1-year target estimate is sitting at 165.06, while the current price 149.15. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
