Based on recent news, as well its key financial indicators, learn more about Johnson & Johnson to see if it’s a good stock to either buy or sell. You can find out how (JNJ fares on certain investment criteria and decide whether the stock meets your investment needs.
Stock News from Johnson & Johnson
Johnson & Johnson’s March 03, 2023 market capitalization was $397.0 Billion. This places it in 100th place among the Pharmaceuticals industry companies.
Johnson & Johnson is currently at 22.9 in price-earnings. Johnson & Johnson is currently reporting trailing 12-month revenues of $94.9 billion, with a 18.9% profit. Recently, the year-over -year quarterly sales increase was -4.4%. Analysts predict that adjusted earnings for the current year will be $10.514 a share. Johnson & Johnson currently offers a 2.9% dividend yield.
As the world returns home to normalcy, demand for electives increases and medical utilization improves, the outlook is positive for the Pharmaceuticals Sub-industry. Companies that specialize in COVID-19 therapy, oncology or immunology have a lot to offer. The potential for COVID-19 vaccins to become a seasonal phenomenon similar to the flu vaccine, should COVID-19 varieties continue to be developed. It would be very lucrative to pharmaceutical companies if that happened, as it would create recurring sales. Recent FDA recommendations like approval for a fourth boost dose for people aged 50 and older suggests that we may be moving this way. The lower-cost emerging markets are likely to cause generic drug companies to struggle. Policy risks are rising despite this. While both parties seek to provide more affordable drug prices for Americans, lowering them continues to be a bipartisan issue. While this creates uncertainty long-term, it is unlikely to result in legislation being passed in the near term due to pressing political issues. The S&P Pharmaceuticals Index was 1.5% higher than the S&P Composite 1500 Index, which saw a 13.6% decline. The S&P Pharmaceuticals Index recorded a 21.8% increase in 2021 compared to the 26.7% gain for the S&P Composite 1500.
Grading Johnson & Johnson Stock
You should analyze the grade of Johnson & Johnson stock before making a purchase, selling, or holding it. Stock evaluation involves accessing large amounts data and the knowledge and ability to read income statements, interpret financial ratios, and analyze stock movement. We designed A+ Investor as a robust data suite to aid individual investors in making decisions on whether or not they should buy (JNJ) stock.
We offers stock grades that are proprietary to A+ Investor. These A-F grades are intuitive and provide A+ Investor for each of the five key investment factors: value; growth; momentum; earnings revisions and quality. We will be taking a closer look at Johnson & Johnson stocks grades for growth, quality and value.
Johnson & Johnson Stock Value Grade
Stock investing success involves buying low and then selling high. Stock valuation should be considered when selecting stocks. To determine if Johnson & Johnson stock can be purchased or sold, you need to evaluate its intrinsic value or fair market price.
Buying stocks that are going up means that you are buying stocks that are not undervalued. But, momentum investors may argue otherwise.
Our A+ Investor Value Grad is calculated using the stock’s value 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 include all six ratios. It also allows for the inclusion of any other ratios. Stocks must have a valid and non-null valuation ratio.
Stocks with values between 81-100 and 61-80 are considered high value.
Johnson & Johnson is rated 23 out of 25 for Value, which is considered Expensive.
Johnson & Johnson Stock Movement Grade
Growth investing is based on the search for stocks that exhibit strong, consistent growth that is likely to continue into 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. To arrive at the company’s Growth Score, the three rank figures for each component are combined.
Companies located in the bottom 20% get Growth Grades (F), which are considered Very Weak. Companies found in the top 20 percent receive A grades.
Johnson & Johnson has a Very Strong Growth Score of 89.
Johnson & Johnson Stock quality grade
Our A+ Quality Grade for Investors is the same as the Value Grade. The percentile rank of the key metrics determines the A+ Investor’s Quality Grade. The Quality Grade is a percentage rank that represents the average of three percentile ranks: return on assets(ROA), return of invested capital(ROIC), gross profit relative asset, buyback yield and change in total liabilities assets, accruals.
The score can consider all eight of the measures. It also allows for the use of any other valid measures. Stocks must possess a valid, non-null measure and the corresponding ranking in at least four of eight quality measurements to receive a Quality Score.
The Quality Score helps to determine the stock’s fundamental quality. Higher quality stocks possess upside potential and lower risks. Backtesting has revealed that stocks with a higher Quality Grade outperformed stock with lower grades between 1998 and 2019.
Stocks get higher grades (higher scores), for having higher scores in quality subcomponents, and lower grades for having lower scores in subcomponents.
Johnson & Johnson’s Quality Score is 92. This score is Very Strong.
Johnson & Johnson Stock Momentum Grade
Momentum scores help identify stocks experiencing abnormally high rates. Research finds that stocks with high relative momentum tends outperform, while stocks with low levels of momentum continue to perform poorly. Momentum can be defined as the price change for a stock in relation to other stocks.
We normally looks at Our weighted relative power over the following four quarters. The relative change in price for each quarter over the past four years is calculated as the weighted fourth-quarter relative strength rank. The most recent quarterly change in price is given 40% weight, while the weight for each of previous quarters is 20%.
Johnson & Johnson is Weak with a Momentum Score 39.
Other Johnson & Johnson Stock Types
A+ Investor grades Estimate Revisions and provides other valuable information such as Value, Growth Momentum, Quality and Quality.
The Earnings Estimates Updates Grade evaluates the company’s earnings surprise during its last two reported fiscal quarters. Surprises often lead to even more surprises (or sales growth). However, it is sometimes the exact opposite. Our stock screen follows the companies with highest earnings estimate revisions, or the best grades. It has a 23.3% year-to-year backtested annual returns since inception. A sample screen following the companies with lowest revisions has just 5%.
These 1 key elements, together with the other factors, give you a comprehensive overview of a stock. A+ Investor can also show you if Johnson & Johnson’s stock passes any one of the 60+ stock screens. These stocks have outperformed market prices since their creation.
Should I Purchase Johnson & Johnson Stock Stock
Johnson & Johnson stock is rated as a Value, Growth, Quality, and Momentum Grade of D.
Whether or you should purchase Johnson & Johnson stock is ultimately dependent on your individual goals, risk tolerance, investment allocation, and risk tolerance. We can help identify the right investments to suit your needs.
It is crucial to compare a stock with other stocks in the industry. Take a look at the table below and see how Johnson & Johnson stock compares with its competitors. Click on any ticker to see stock grades for quality, momentum, price, and EPS revisions.
Johnson & Johnson Stock – Bottom line
You can find out how Johnson & Johnson stock grades to help you decide if it is worth investing in. However, Johnson & Johnson stock must be rated based on a number of factors, including metrics, ratios and reports from the U.S. Securities and Exchange Commission.
We encourage all investors to do their homework and conduct research. This allows you to become financially independent and manage your own wealth. We has timeless articles and research on financial planning and stock picking, and actionable analytics that can help you be a better investor.
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