On March 27, Johnson & Johnson (NYSE:JNJ) stock fell 2.7% and closed at $123.16. Based on the last closing price, the company has a market cap of $324.7 billion. The stock price has risen 2.7% in the trailing five-day period, while it has fallen 11.2% in the trailing 12-month period.
Currently, JNJ stock is trading 20.3% below its 52-week high of $154.50 on February 6, 2020. The stock is also trading 12.8% above its 52-week low of $109.16 on March 23, 2020. On a year-to-date basis, the stock has fallen by 15.6% as of March 27.
Johnson & Johnson is one of the companies that’s working on a vaccine for the coronavirus outbreak. JNJ stock rose immediately after the company announced that an experimental coronavirus vaccine might be available by September.
According to a Reuters report, “Johnson & Johnson said on Monday human testing of its experimental vaccine for the coronavirus would begin by September and that it could be available for emergency use authorization in early 2021.” The report also said, “J&J also said it had committed more than $1 billion of investment along with U.S. agency Biomedical Advanced Research and Development Authority to co-fund vaccine research.”
Johnson & Johnson’s growth projections
JNJ reported sales of $20.7 billion in the fourth quarter of 2019—a rise of 1.7% YoY (year-over-year) from sales of $20.4 billion in the fourth quarter of 2018. The company reported an adjusted EPS of $1.88 in the fourth quarter of 2019 compared to $1.97 in the fourth quarter of 2018. Wall Street analysts expected the company to report revenues of $20.8 billion and earnings of $1.87 in the fourth quarter of 2019.
Wall Street analysts expect Johnson & Johnson to post sales of $20.4 billion in the first quarter. The figure would mark a rise of 1.9% YoY compared to $20.0 billion in the first quarter of 2019. Also, analysts expect the company to post an adjusted EPS of $2.12 in the first quarter compared to $2.10 in the same period last year. Currently, analysts expect a 3.6% and 5.6% rise in the company’s 2020 and 2021 revenues, respectively. Meanwhile, they expect an adjusted EPS of $8.88 and $9.63 in 2020 and 2021, respectively.
Analysts’ recommendations for JNJ stock
According to the latest recommendations from 19 brokerage firms surveyed by Reuters, 14 of the analysts recommend a “buy,” while five recommend a “hold.” None of the analysts recommend a “sell.”
Analysts have an average target price of $159.19 on JNJ stock. The target price implies a return of 29.3% based on the closing price of $123.16 on March 27. The consensus target price for the stock declined from $161.81 in February. The lowest target price estimate is $133, while the highest is $173.
JNJ’s stock returns
On March 27, JNJ stock was trading 5.4% below its 20-day moving average of $130.25. Meanwhile, the stock is trading 12.7% below its 50-day moving average of $141.14 and 12.4% below its 100-day moving average of $140.68. The stock’s 14-day relative strength index score of 43 indicates that the stock isn’t overbought or oversold.
JNJ has an upper Bollinger Band level of $148.98. The company’s middle Bollinger Band level is $130.89, while its lower Bollinger Band level is $112.79. On March 27, the stock closed near its middle Bollinger Band level, which also denotes that the stock isn’t overbought or oversold.
Currently, JNJ stock is trading at 13.88x its fiscal 2020 estimated EPS of $8.88. Meanwhile, the stock is trading at 12.78x its fiscal 2021 estimated EPS of $9.63. Wall Street analysts expect JNJ’s earnings to rise at a CAGR of 5.6% over the next five years.
JNJ stock is trending upward in today’s trading session. The stock rose by 6.7% at 10:25 AM ET. At the same time, the S&P 500 and the Dow Jones Industrial Average rose 1.5% and 1.0%, respectively. The broader markets rose as President Trump extended US social distancing guidelines through the end of next month. Read Will the Dow Jones Crash Create a Double Bottom? for more analysis.