Wall Street analysts’ estimates
As we discussed earlier in this series, Johnson & Johnson (JNJ) reported 11.5% growth in revenues to ~$20.2 billion during 4Q17 compared to ~$18.1 billion during 4Q16. This increase included 9.4% growth in revenues at constant exchange rates and a 2.1% positive impact of foreign exchange.
The chart above shows analysts’ recommendations for Johnson & Johnson (JNJ) stock since February 2017. Wall Street analysts expect Johnson & Johnson to generate EPS of $2.01 on revenues of ~$19.4 billion in 1Q18 for 9.2% growth in revenues compared to 1Q17. This growth was due to increased sales across the company’s three business segments—Pharmaceuticals, Consumer, and Medical Devices.
Johnson & Johnson’s stock price has increased nearly 27.1% over the last 12 months and nearly 1.7% in 2018 year-to-date. Analysts expect JNJ stock to increase ~5.1% over the next 12 months.
Wall Street analysts’ recommendations show a 12-month target price of $149.27 per share compared to the last price of $142.07 per share on January 24, 2018.
On January 26, 2018, 24 analysts tracked Johnson & Johnson (JNJ) stock. Of these analysts, 12 analysts recommended a “buy,” nine analysts recommended a “hold,” and three analysts recommended a “sell.” The consensus rating for Johnson & Johnson stands at ~2.5, which represents a “buy” for value investors.
The changes in analysts’ recommendations and estimates for JNJ’s target price are based on the changes in the trends of its stock price, as well as developments and changes in the company’s performance.
The First Trust NASDAQ Pharmaceuticals ETF (FTXH) holds 82.4% of its total investments in pharmaceutical companies and ~17.6% in biotechnology companies. FTXH holds 7.4% in Johnson & Johnson (JNJ), 3.9% in Merck & Co. (MRK), 7.3% in Pfizer (PFE), and 8.0% in Abbott Laboratories (ABT).