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Johnson & Johnson Stock Upgraded To A Hold Or Accumulate Candidate

Jul. 23, 2018 10:08 AM ET
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Summary

  • Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide.
  • Given the current horizontal trend you can expect Johnson & Johnson with 90% probability to be traded between $118.89 and $128.76 at the end of this period with 90% probability.
  • The company's Pharmaceutical segment offers various products in the areas of immunology, infectious diseases and vaccines, neuroscience, oncology, cardiovascular and metabolic, and pulmonary hypertension diseases.

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the health care field worldwide. Its Consumer segment offers baby care products under the JOHNSON'S brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DABAO, JOHNSON'S Adult, LE PETITE MARSEILLAIS, NEUTROGENA, RoC, and OGX brands; over-the-counter medicines, including acetaminophen products under the TYLENOL brand; cold, flu, and allergy products under the SUDAFED brand; allergy products under the BENADRYL and ZYRTEC brands; ibuprofen products under the MOTRIN IB brand; and acid reflux products under the PEPCID brand. This segment also provides women's health products, such as sanitary pads under the STAYFREE and CAREFREE brands, and tampons under the o.b. brand; wound care products comprising adhesive bandages under the BAND-AID brand and first aid products under the NEOSPORIN brand.

Johnson & Johnson (JNJ)  Technical Stock Analysis 

$125.92 0.07 (0.06%) 08:56:16 - 2018-7-23

Industry: Drug Manufacturers - Major Sector: Healthcare Exchange: NYSE

Technical stock analysis for Mon 23'rd Jul 2018

Hold candidate since 2018-07-20

Shorts 2.30% ( 2018-06-29 )
Cash 16 231.0 mill
Loans 35 166.0 mill
Beta 0.71
ROA 0.89

Johnson & Johnson fell by -0.07% in the last day from $125.94 to $125.85 and has now fallen 4 days in a row. The price has fallen in 6 of the last 10 days , but is still up by 0.08% over the past 2 weeks. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day the trading volume fell by -0.13 million shares and in total 5.84 million shares bought and sold for approximately $734.40 million.

Trend

Given the current horizontal trend you can expect Johnson & Johnson with 90% probability to be traded between $118.89 and $128.76 at the end of this period with 90% probability. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Signals

Johnson & Johnson holds a sales signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately $126.73. On a fall, the stock will find some support from the long-term average at approximately $123.70. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Tuesday July 17, 2018, which indicates further falls until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Relative Strength Index (RSI)

RSI 14 is 62 and the stock is currently not being overbought or oversold.

Support & Resistance

Johnson & Johnson finds support from accumulated volume at $122.84.

Risk

This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved $1.02 (0.82%) between high and low. For the last week, the stock has had a daily average volatility of 1.53%.

Recommended stoploss: $119.74 (-4.86%) (This stock has low daily movements and this gives low risk. There is a sell signal from pivot top found 3 days ago.)

Overall risk:  Low 

Evaluation

Johnson & Johnson holds several positive signals, but I still don't find these to be enough for a buy-recommendation. At the current level I recommend to hold or accumulate in this position while awaiting further development. I have upgraded my recommendation for this stock since last evaluation from a Sell Candidate to a Hold/Accumulate.

The company's Pharmaceutical segment offers various products in the areas of immunology, infectious diseases and vaccines, neuroscience, oncology, cardiovascular and metabolic, and pulmonary hypertension diseases. Its Medical Devices segment provides orthopedic products; general surgery, biosurgical, endomechanical, and energy products; electrophysiology products to treat cardiovascular disease; sterilization and disinfection products to reduce surgical infection; diabetes care products that include blood glucose monitoring; and vision care products, such as disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery. The company markets its products to general public, retail outlets and distributors, wholesalers, hospitals, and health care professionals for prescription use, as well as for use in the professional fields by physicians, nurses, hospitals, eye care professionals, and clinics.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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