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Understanding JNJ’s Latest Stock Price Rise

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Aug. 18 2020, Updated 5:27 a.m. ET

JNJ’s stock performance

Johnson & Johnson (JNJ) stock closed at $136.7 on July 20, 2017. It has a 50-day moving average of $132.7 and a 200-day moving average of $124.3.

On July 20, 2017, JNJ stock was trading at its 52-week high of $137.1, which was ~25.4% above its 52-week low of $109.3 on December 7, 2016.

JNJ stock rose ~1.4% after the company released its 2Q17 earnings on July 18, 2017. The rise in stock’s price was triggered by strong earnings results and the upward revision to JNJ’s fiscal 2017 guidance.

Positive investor sentiments were also boosted by JNJ’s robust product pipeline, which includes promising new product launches in the remainder of 2017.

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Uptrend on earnings

JNJ stock has been witnessing an uptrend for the past few months. These bullish sentiments were, of course, boosted by strong earnings results on July 18, 2017.

The company is expected to witness the robust performance in 2H17 and is thus expected to see further stock price gains over a modest period of time, making the stock a steady investment option over the long term.

Peer stock performances

As of July 20, 2017, peers Medtronic (MDT), Zimmer Biomet Holdings (ZBH), and Abbott Laboratories (ABT) have generated returns of -3.1%, 3.3%, and 20.8%, respectively, over the past 12 months.

JNJ’s YTD (year-to-date) returns stand at around 18.5%. The stock has returned ~11% over the past year but has underperformed the market, as represented by the S&P 500 Index. The S&P 500 Index has returned ~14.4% during the same period. The Health Care Select Sector SPDR Fund (XLV), which represents the US healthcare industry, has returned ~9.4%.

JNJ stock is now outperforming the broader industry.

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