Johnson & Johnson (JNJ)

JNJ stock forecast: buy or sell

JNJ stock outlook

  • Johnson & Johnson closed today at $144.44 after barely changing a 0.16%.
  • Johnson & Johnson shares are just 7.09% below all-time highs
  • From the chart point view, price is drawing a scaled uptrend since late June with higher tops and higher bottoms. This rally marked a 6.12% gain
  • Johnson & Johnson researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices.
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Important note:
The opinions contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the individual positions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for learning purposes only

JNJ stock charts overview

Should I buy Johnson & Johnson stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is JNJ stock a buy?

In the current situation of Johnson & Johnson there is not any eligible buy setup. This doesn't mean we expect a selloff for JNJ in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Johnson & Johnson stock?

How to know when is it time to sell Johnson & Johnson?. Similarly to when we have to buy shares, determining when is appropiate time to sell is not a random decision, and we must use our own trading style. Our trading system selects very simple setups to guide us on when is a good time to sell a stock. Be aware that these setups should not be used for selling short Johnson & Johnson stock

A golden rule is that you must never hold an operation that generates greater losses than those expected at the time of purchase. When to sell your stock always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Johnson & Johnson stock?

Currently, Johnson & Johnson stock doesn't match any of our preferred sell setups, so if you own Johnson & Johnson stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Johnson & Johnson stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one brokerage rating was published for Johnson & Johnson

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Johnson & Johnson ratings

Brokerage firmRating
Sep 4th, 2020
Credit Suisse Group Strong buy

Technical analysis

Johnson & Johnson shares started an uptrend in late June, and grew an amazing 6.12%. Rising peaks and troughs can be seen easily on a chart and how price gave very few buy points on the breakouts. Latest low was in late July, when price bounced at $143.01. Like in all uptrends, price needs to rest and currently price is moving in a range between $155.47 and $143.01

JNJ close to All-time Highs

Close to ATH

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Technical analysts use supports and resistances to spot price points on a chart that may work as barriers, containing the price of an asset to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it is likely to continue falling until approaching another support level. On the contrary, resistance levels are where the price tends to find a curb as it moves up. Likewise, the price is more liable to "bounce off" at this level, and if it finally crosses this level, the price will rally more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $144.93 (0.34% above)
  • R2: $149.04 (3.18% above)
  • R3: $150.67 (4.31% above)
  • The current supports are:

  • S1: $143.01 (-0.99% below)
  • S2: $142.32 (-1.47% below)
  • S3: $142.06 (-1.65% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are lines that run around a centralmoving average, ranging the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price broke down the lower band yesterday, the price rebounded by 0.5%. The price is moving near to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a buy signal, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to plot the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates in a range from 0 to 100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on September 1 after just crossing to the overbough zone for a single day (weak signal). The RSI reading today was 39.38. Since RSI lost the overbought zone, Johnson & Johnson shares dropped a 5.85%

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    Earnings and financials

    Johnson & Johnson (JNJ) posted adjusted EPS for the fiscal Q2 that enhanced Market expectations. Quarterly EPS was $1.67 per share vs. $1.50. This Q2 report represents an earnings surprise of 11.33%. Company's revenue resulted of $18.3 billion compared to $17.6 billion forecasted by market consensus.

    Same quarter one year ago, reported EPS was $2.58, so recently posted EPS is a loss of -35.27%. Turnover fell a -10.82% on an annualized basis in the 2nd-quarter, from $20.6B to $18.3B last quarter.

    JNJ is releasing Q3 financial report on mid next October. Market predicts an EPS of $1.96, compared to Q2 that was $1.67. Earnings reporting day has a more than usual risk for stock traders as the information published can gap up or down the price with very low liquidity and not respecting your buy/stop-loss orders. You can find more details about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.jnj.com.

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