Wall Street analysts’ estimates
As we’ve already seen, Johnson & Johnson reported revenues of ~$20.2 billion in 4Q17, an 11.5% growth in revenues compared to ~$18.1 billion in 4Q16. That includes a 9.4% growth in operating revenues and a 2.1% favorable impact of foreign exchange.
The above chart shows analysts’ recommendations for Johnson & Johnson stock over the last three years. Analysts also estimate that Johnson & Johnson could generate EPS (earnings per share) of $2.01 on revenues of ~$19.4 billion in 1Q18, a 9.2% growth compared to 1Q17. That would follow the increase in sales from key products across its three segments: Pharmaceutical, Medical Devices, and Consumer.
JNJ stock has risen nearly 7.8% over the last 12 months but has fallen ~5.3% in 2018 year-to-date. Analysts estimate that the stock could rise ~13.8% over the next 12 months. Analyst recommendations show a 12-month target price of $150.62 per share compared to its last price of $132.02 per share on February 23, 2018.
As of February 26, 2018, there are 23 analysts tracking Johnson & Johnson. Twelve of them have recommended a “buy” for the stock, eight have recommended a “hold,” and three have recommended a “sell.” The consensus rating for Johnson & Johnson is 2.4, which represents a “buy” for value investors. Changes in analysts’ recommendations and estimates for the target price are based on changes in the trend of the stock as well as the company’s developments and performance.
The First Trust Value Line Dividend ETF (FVD) has 6.9% of its total investments in healthcare companies. It has ~0.5% in Johnson & Johnson (JNJ), ~0.5% in Merck & Co. (MRK), ~0.5% in Eli Lilly (LLY), and ~0.5% in Sanofi (SNY).