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Behind JNJ’s Recent Stock Price Performance: Is More Growth Coming?

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Aug. 18 2020, Updated 9:27 a.m. ET

JNJ’s stock performance

Johnson & Johnson (JNJ) has had disappointing quarterly performances for the past few quarters, missing the analysts’ sales estimates. But on October 17, 2017, when JNJ announced its 3Q17 results, the stock gained 3.4%.

This gain was likely due to continued positive investor sentiments, which were likely driven by higher-than-expected earnings and a belief in the company’s long-term performance and growth.

JNJ stock closed trading at a price of $139.1 on November 15, 2017. The stock has a 50-day moving average of $137.8 and a 200-day moving average of $132.9.

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Recent stock trend

JNJ stock has been gaining traction and moving upward recently. The stock has returned ~2% since its 3Q17 earnings release.

Meanwhile, on October 20, 2017, the company won favorable judgments in two separate cases of plaintiffs claiming that JNJ’s talcum powder products caused ovarian cancer. The judges reversed the verdict that awarded punitive damages to the plaintiffs. JNJ stock gained ~1% that day.

On a YTD (year-to-date) basis, JNJ stock has gained ~20.5%. In the past year, the stock returned ~19.3% to investors.

Peer stock performances

As of November 15, 2017, peers Medtronic (MDT), Abbott Laboratories (ABT), and Zimmer Biomet Holdings (ZBH) have returned around -3.4%, 38.4%, and 14.5%, respectively, in the past year.

JNJ has surpassed the market’s performance, as represented by the S&P 500 Index, over the past year. While JNJ registered 12-month return of ~19.3%, the market’s return was ~18.9%.

The US healthcare industry as represented by the Health Care Select Sector SPDR Fund (XLV) has returned 16.3% in the past 12 months. JNJ stock has thus exceeded the performance of the industry during the past year.

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