Johnson & Johnson
JNJ
$222.89
-0.28%
Johnson & Johnson is the world's largest and most diverse healthcare firm, operating through two core divisions: Innovative Medicine (pharmaceuticals) and MedTech (medical devices). It is a dominant market leader with a long-established competitive identity built on a diversified portfolio, massive scale, and a consistent dividend history. The current investor narrative is centered on the company's post-consumer business (Kenvue) transformation into a pure-play healthcare entity, navigating the looming patent expiration of its blockbuster drug Stelara while demonstrating solid underlying operational performance and navigating a complex regulatory environment, including potential drug pricing tariffs.…
JNJ
Johnson & Johnson
$222.89
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JNJ 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Johnson & Johnson's 12-month outlook, with a consensus price target around $289.76 and implied upside of +30.0% versus the current price.
Average Target
$289.76
15 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
15
covering this stock
Price Range
$178 - $290
Analyst target range
Analyst coverage for JNJ is substantial, with 15 analysts providing estimates, indicating strong institutional interest. The consensus sentiment leans bullish, as evidenced by recent institutional ratings from firms like RBC Capital (Outperform), HSBC (Buy), and Citigroup (Buy), though there are neutral stances from Barclays and JP Morgan. The average target price is not explicitly provided in the data, but analysts have provided revenue and EPS estimates; the implied upside or downside cannot be calculated without the consensus price target. The target range for estimated EPS is wide, from a low of $17.25 to a high of $18.26, reflecting some uncertainty around future earnings power, likely tied to debates over drug pricing, pipeline success, and the Stelara patent cliff. The pattern of recent analyst actions shows a mix of reiterations, with a notable upgrade from Morgan Stanley to Overweight in January 2026, signaling a generally stable to positive view on the stock's prospects.
JNJ Technical Analysis
The stock is in a sustained long-term uptrend, evidenced by a robust 46.72% one-year price change, but is currently experiencing a significant pullback from recent highs. With a current price of $225.33, it is trading at approximately 56% of its 52-week range ($149.04 to $251.71), indicating a retreat from the highs and positioning it in a middle-ground area that could signal either a consolidation before further gains or a deeper correction. Recent momentum has turned sharply negative, diverging from the longer-term bullish trend; the stock is down 0.89% over the past month and down 9.30% over the past three months, suggesting a loss of short-term momentum and potential profit-taking after the strong run. Key technical support is anchored at the 52-week low of $149.04, while immediate resistance is at the recent high of $251.71; a decisive break below the recent May low near $221 could signal a deeper correction toward the $200 level. The stock's beta of 0.263 indicates it is significantly less volatile than the broader market (SPY), which fell 10.28% over the same three-month period, highlighting its defensive characteristics during market downturns.
Beta
0.26
0.26x market volatility
Max Drawdown
-11.0%
Largest decline past year
52-Week Range
$149-$252
Price range past year
Annual Return
+43.4%
Cumulative gain past year
| Period | JNJ Return | S&P 500 |
|---|---|---|
| 1m | -1.9% | +5.4% |
| 3m | -9.1% | +10.9% |
| 6m | +10.1% | +11.0% |
| 1y | +43.4% | +28.1% |
| ytd | +7.5% | +11.4% |
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JNJ Fundamental Analysis
Revenue growth remains positive but is showing signs of deceleration from earlier peaks; the most recent quarterly revenue was $24.56 billion, representing a solid 9.08% year-over-year growth, yet this follows a period of more volatile quarterly performance as seen in the income statement data. The Innovative Medicine segment, at $15.76 billion for the latest period, is the primary growth driver, significantly outpacing the MedTech segment's $8.80 billion. The company is highly profitable, with a net income of $5.12 billion for Q4 2025 and a trailing net margin of 28.46%, though quarterly margins have fluctuated, with the gross margin in the latest quarter at an exceptionally high 86.37% compared to a trailing gross margin of 72.78%. Profitability is robust but shows some quarterly volatility, as seen in the sequential decline from Q3 2025's net income of $5.15 billion and the significant spike in Q1 2025 to $10.99 billion due to other income. The balance sheet is strong with a manageable debt-to-equity ratio of 0.59, and the company generates substantial cash flow, with trailing twelve-month free cash flow of $19.70 billion, providing ample liquidity for dividends, share repurchases, and strategic investments while maintaining a healthy current ratio of 1.03.
Quarterly Revenue
$24.6B
2025-12
Revenue YoY Growth
+0.09%
YoY Comparison
Gross Margin
+0.86%
Latest Quarter
Free Cash Flow
$19.7B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is JNJ Overvalued?
Given the consistently positive net income, the primary valuation metric is the Price-to-Earnings (PE) ratio. The trailing PE is 18.81x, while the forward PE is 17.72x, indicating the market expects modest earnings growth, with the slight compression suggesting stable, not accelerating, future profitability expectations. Compared to the provided industry data, JNJ's trailing PE of 18.81x is difficult to contextualize without a specific industry average, but its forward multiple suggests a valuation in line with steady, low-growth expectations typical for a mature healthcare giant. Historically, the stock's own PE ratio has ranged widely; the current trailing PE of 18.81x sits below the historical high seen in recent quarters (e.g., 36.20x in Q3 2024) and is near the middle of its own historical band, suggesting the stock is not excessively valued relative to its own history, potentially offering a reasonable entry point after its recent pullback.
PE
18.8x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -1502x~36x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.0x
Enterprise Value Multiple
