You can find out more about Johnson & Johnson and whether it is a good stock for you to sell or buy based on its financial metrics as well as recent news. Learn more about how (JNJ), as a stock, is rated on different investment factors.
Stock News Latest from Johnson & Johnson
Johnson & Johnson, which had a market capitalization of $397.0 million as of March 03rd 2023, was ranked in the 100th per centile of companies in Pharmaceuticals.
Johnson & Johnson has a current price-earningss ratio of 22.9. Johnson & Johnson’s trailing 12 month revenue is $94.9Billion with an 18.9% profit margin. Most recently, year-over-year quarter sales growth was -4.4%. Analysts anticipate adjusted earnings to be $10.514 per share for the current fiscal. Johnson & Johnson has a 2.9% dividend rate.
The outlook for Pharmaceuticals is good as the world returns from recession and the demand for medical services and electives improves. Pharma companies must be aware of the importance of COVID-19 therapies, immunology, and oncology. The possibility of a COVID-19-related vaccine becoming a seasonal phenomenon could occur if COVID-19 versions continue to develop. It could be very lucrative for pharmaceutical firms, since it would generate recurring revenue. Recent FDA guidelines, such as the approval for a fourth dose of booster for patients 50 and over, indicate that we may be moving towards this goal. Low-cost competition in emerging markets will mean generic drug makers will struggle to compete. Even with this, policy risk are on the rise. The bipartisan effort to lower drug prices will continue to be a key issue. Both parties are trying to offer affordable prices to Americans. This provides uncertainty for the long term, but it is unlikely that legislation can be passed in the near future because of more pressing political issues. The S&P Pharmaceuticals Index rose 1.5% in the year to June 3 versus a 13.6% drop for the S&P Composite 1500 Index. In 2021, S&P Pharmaceuticals Index grew by 21.8%, while the S&P Composite 1500 Index gained 26.7%.
Grading Johnson & Johnson Stock
Analyzing how Johnson & Johnson stock was graded is crucial before you buy, sell, or keep it. Stock evaluation requires the ability to access large quantities of data as well as the knowledge and patience to analyze it all. We has created A+ Investor, which is a data suite that helps investors decide whether to buy JNJ stock. It’s a powerful data suite that can condense data research in an easy-to-use and customizable manner that is accessible to investors of all levels.
We stock grades come with A+ Investment. These provide A-F grades with intuitive A-F ratings for five key investing factors, namely value, growth and momentum, earnings revs, quality, and quality. We will now examine Johnson & Johnson’s stock grades regarding quality, growth, value and quality.
Johnson & Johnson Stock Value Grade
Successful stock investing involves selling high and buying low. Therefore, stock valuation is important for stock selection. To determine if Johnson & Johnson stock has intrinsic or fair market value, you will need to evaluate it.
Stocks that will go up usually mean stocks that are already undervalued. Momentum investors may argue the opposite.
Our A+ investor value grade is derived from the stock’s price 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 is flexible, which means it can consider all six of the ratios. Stocks must have a valid, non-null ratio and a corresponding ranking for at minimum two of the six valuation factors to receive a Value score.
Stocks with a Value Score of 81 to 100 are considered deep-value, and those with a Score between 61-60 are valued.
Johnson & Johnson has a 23 Value Score, which is Expensive.
Johnson & Johnson Stocks Growth Grade
The foundation of investing in growth is to find stocks of companies that are displaying strong, consistent and long-term growth that is expected continue into 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 numbers are added together to produce a company’s Growth Score. The sum is then compared to the whole stock universe.
The lowest 20% of companies receive Growth grades of F. This is considered very weak. While the top 20% receive A grades. These grades are considered Very Strong.
Johnson & Johnson has a growth score of 89, which indicates that they are Very Strong.
Johnson & Johnson Stock Grade
Our A+ Investor Quality Grade is similar to the Value Grade. It comes from the percentile ranking of key metrics. The Quality Grade refers to the percentile rank of all the key metrics, including return on assets (ROA), ROIC, return on invested capita (ROIC), gross profits relative to assets as well as buyback yield, change to total liabilities assets, accruals and Z double prime bankruptcy risk scores (F-Score).
Variable score means that it can take into account all eight quality measures. Stocks must have at minimum four of the eight quality indicators and a valid (nonnull) measure.
The Quality Score is used for assessing the underlying quality and stability of a stock. Higher quality stocks are more likely to have upside potential and lower risk. Backtesting of Quality Grade showed that stocks with higher grade stocks outperformed stocks of lower grades during the period 1998 to 2019.
Stocks that have higher scores for quality subcomponents will get better grades (higher marks) than stock which has lower scores.
Johnson & Johnson has a Quality Scoring of 92, which indicates that they are Very Strong.
Johnson & Johnson Stock Momentum Grade
Momentum grades can help you identify stocks that are returning at an abnormally high rate of return. Research shows that stocks which have high relative momentum tends to outperform while those with low momentum tend to continue to be underperform. Momentum refers to the price change in a stock over a period relative all other stocks.
We generally looks at Our weighted relative strength for the past four quarters. The relative price change in each quarter of the past four quarters is used to calculate the weighted 4-quarter relative strength rank. The weighting for the most recent quarterly price changes is 40%. Each of the previous quarters receives a 20% weight.
Johnson & Johnson has a Momentum score of 39. This is Weak.
Other Johnson & Johnson Stock Quality Grades
A+ Investor not only provides quality grades for Value, Growth and Momentum but also offers estimates revisions.
The Earnings Estimates revisions Grade considers the company’s earnings surprise during its most recent fiscal quarters. Surprises often bring more surprises or continue sales growth. The opposite is usually true. Our stock screen which tracks companies with high earnings estimate revisions (i.e. those with the best grades) has a 23.3% return on investment since inception. A screen which follows those with low revisions has a return on investment of less than 5%.
These key factors together with the others give a complete picture of a stock. A+ Investor will allow you to view Johnson & Johnson stocks that have passed all 60+ stock screens. They have outperformed every market since their creation.
Should I buy Johnson & Johnson Stock Stock?
Johnson & Johnson stocks have a Value Grade D, Growth Grad of A. Quality Grade A. Momentum Grade D.
Whether or not to buy Johnson & Johnson stock depends on your individual goals and risk tolerance. We is able to help you identify the investments that work best for your needs and can assist with this process.
It’s crucial to compare a stock to others in the same sector. Check out the table below for how Johnson & Johnson compares to its competitors. Click on any of these tickers to see the stock grades for value and momentum, quality, and EPS revisions.
Johnson & Johnson stock: Bottom line
This information will help you determine if Johnson & Johnson stock should be your next investment. However, Johnson & Johnson stock can be a buy or sell based on a combination o grades, metrics, ratios and U.S Securities and Exchange Commission (SEC).
We encourage investors not to rely on others to do their research. By doing this, you can manage your own wealth and avoid relying on others. We offers timeless articles on stock-picking and financial plan, impartial research and actionable analysis that make you a better investment.
To help you make a decision on whether Johnson & Johnson stock to buy, sell, or hold, use our robust screening tools like A+ Investor.
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