A look at Johnson & Johnson
Johnson & Johnson (JNJ) is one of the largest pharmaceutical and healthcare companies. With headquarters in New Brunswick, New Jersey, the company sells its products in over 200 countries worldwide.
Stock price performance
Johnson & Johnson’s stock price has risen ~5.9% in 2Q17. As of July 7, 2017, its stock price had risen ~15.0% year-to-date.
Wall Street analysts expect the stock price to fall marginally over the next 12 months. Analysts’ recommendations show a 12-month targeted price of $132.28 per share, compared with $132.52 per share on July 6, 2017.
There are 21 analysts tracking Johnson & Johnson stock. Of these, nine analysts recommend “buy,” while 12 analysts recommend “hold.” None of the analysts have recommended “sell.” The consensus rating for Johnson & Johnson stands at 2.5, which represents a moderate “buy” for value investors.
Analysts’ revenue estimates
Johnson & Johnson’s revenue has increased over the past few years, following the restructuring of its business segments and the strong performance of some of its key products. Its growth drivers include various products from its immunology and oncology franchise in the Pharmaceuticals segment, beauty care products and OTC (over-the-counter) products in the Consumer segment, and orthopedics, specialty surgery, and vision care in the Medical Devices segment.
Wall Street Analysts expect revenue of $19.0 billion in 2Q17, a ~2.6% growth from 2Q16, and earnings per share of $1.80. To divest company-specific risk, investors could consider the iShares US Healthcare ETF (IYH), which has a 10.8% exposure to Johnson & Johnson, a 6.8% exposure to Pfizer (PFE), a 6.2% exposure to Merck and Co. (MRK), and a 4.3% exposure to Amgen (AMGN).