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Analyzing Johnson & Johnson’s Recent Stock Performance

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Stock performance

Johnson & Johnson (JNJ) was trading at $114.90 on October 20, 2016, with a 50-day moving average of $118.40 and a 200-day moving average of $117.60.

That day, JNJ’s stock was trading ~21.9% above its 52-week low of $94.30 on January 21 and ~8.9% below its 52-week high of $126.10 on July 20, which was triggered by J&J’s strong 2Q16 earnings results. However, the company’s share price has corrected ~6.7% since the release of its 2Q16 earnings on July 19, 2016.

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Johnson & Johnson’s (JNJ) stock price fell ~2% after the release of its 3Q16 results on October 18, 2016. However, the company’s revenues and earnings exceeded analysts’ estimates, and JNJ raised its fiscal 2016 earnings guidance. The company’s weak Consumer segment sales, as well as the impending competition to its blockbuster drug Remicade, have made investors wary about the company’s near-term performance.

On October 20, 2016, Johnson & Johnson’s peers Thermo Fisher Scientific (TMO), Medtronic (MDT), and Becton Dickinson (BDX) have generated returns of 21.8%, 15%, and 27.8%, respectively, during the past 12 months.

Comparisons with industry and market performances

Johnson & Johnson (JNJ) has risen ~17% in the past year. The company’s stock has outperformed the market as represented by the S&P 500 Index, which returned ~5.3% during the same period.

JNJ’s stock performance can also be compared to the US healthcare sector performance, which is represented by the Health Care Select Sector SPDR ETF (XLV). XLV has risen ~0.76% during the past 12 months. JNJ returned ~10.7% on a year-to-date basis. This figure compares to the 3.8% and -3.3% returns generated by the market and the Health Care Select Sector SPDR ETF, respectively.

In the final article in this series, we’ll discuss the latest analyst recommendations for JNJ.

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