More analysis - www.ewpple.com
Johnson & Johnson (JNJ)
Fact & News
- Robert Wood Johnson's granddaughter was the 1st baby that appeared on a J&J baby powder label.
- Johnson & Johnson blows past Wall Street estimates in the 3rd quarter.
- J&J halts Covid-19 vaccine trial on unexplained illness.
- JNJ hold a S&P AAA rating and is a constituent stock of the S&P 500 index.
Valuation (TTM Trailing 12 Months to Jun 20)
Price | USD 148.36.
Market Capitalization | USD 391B vs Enterprise Value (EV) USD 402B.
Price /Earnings (PE) | 26X. Cheap vs S&P average PE of 35X.
Price /Book (PB) | 6.2X. Expensive vs S&P average PB of 3.9X.
Dividend Yield (DY) | 2.6%. Yield is high vs average DY of S&P 1.7%.
Net Income | USD 15B (-12%).
Net Margin | 20%. This is HIGHER than 87% of the Drug Manufacturers industry.
Interest Coverage | 90X. This is HIGHER than 83% of the Drug Manufacturers industry.
Technical Analysis
Long Term Trend | Up.
Short Term Trend | Uptrend channel.
Support Line | USD 138, next support USD 127.
Resistance Line | USD 158.
Stochastic | Crossed inside overbought zone. May have temporary trend weakness within short term channel.
Analyst Consensus
Target Price | USD 165.33
Call | BUY.
Conclusion
JNJ price looks fair valuation wise & trending upwards chart-wise. Despite the negative vaccine news, I still like JNJ for 1) Good profit & margin, 2) Solid 3Q result & strong outlook for the full year, 3) Sound balance sheet & 4) JNJ's pharmaceutical & medical device business fast growth.
No comments:
Post a Comment