Johnson & Johnson (JNJ)

Fundamental analysis
Johnson & Johnson is an American multinational medical technology, health care, pharmaceuticals and drug products company. The company is traded on the New York Stock Exchange and its shares are included in the Dow Jones Industrial Average stock index. It is also a member of the Fortune 500. It has more than 130,000 employees worldwide. The most famous brands of the group are: Neutrogena, Listerine, Johnson’s. According to its statement, the company has the largest range of products in the industry and is thus the best diversified. It has a positive long-term track record. JNJ invests massively in development and innovation. It ranks second in R&D investment. For 2022, it has 6 new drug approvals and acquisition of 8 more drugs or licensed manufacturing.
The company’s revenues are evenly split (roughly half and half) between the US and the world. They have been growing steadily since 2018. For 2022, U.S. sales were $48.6 billion and world sales were $46.4 billion. Net profit grew even in the covide era. For 2022, it was $17.9 billion. The main holders of the company are the Vanguard (9.5% of shares) and Blackrock (7.7% of shares) funds.
EPS (earnings per share) was $6.73
Results
For 2023, the company had sales of $85.2 billion. Worldwide growth was 6.5%. EPS was $5.20 per share.
Growth was also good in the Innovative Medicine (+9.5%) and Medical Devices (+9.1%) segments.
The company’s sales in the US were roughly double those in Europe.
JNJ has paid a dividend for more than 60 years. The expected dividend for 2024 is around $4.90 per share. In 2023, the company paid a dividend of just over $4 per share.
Technical analysis
JNJ stock is very liquid, with a daily volume of around 7 million shares traded.
It is currently approaching the crossing of two moving averages and thus a possible trend reversal from downtrend to uptrend.
The RSI is in the neutral zone.
Major resistances are far from the current price.
Conclusion
The defensive dividend stock JNJ is a stalwart in the market. The share price is rising on the very long term chart but rather falling on the current daily chart. However, it is a solid title, the company has no debt, sales and earnings are growing steadily. It pays a dividend over the long term.
If the moving averages cross, the share price may rise and the first resistance is at $180 per share. If there is no crossing, the price may fall further. Support is then at $150 per share.
Sources
https://seekingalpha.com/symbol/JNJ
https://finance.yahoo.com/quote/JNJ
https://www.investor.jnj.com/files/doc_presentation/2024/01/UPDATE-FINAL-JNJ-Earnings-Presentation-Q4-2023.pdf
https://investor.jnj.com/files/doc_downloads/IFS/2022-investor-fact-sheet.pdf
https://en.wikipedia.org/wiki/Johnson_%26_Johnson