Drugmakers Get Bitter Pill: Opioid Lawsuit to Proceed
Pharmaceutical companies who have produced and marketed opioids such as Oxycontin have been 'drug' a little closer to a potentially expensive day of reckoning. A federal magistrate who reviewed a test-case of the class action suit though which thousands of municipalities are seeking billions of dollars in damages has deemed that the injuries claimed by the plaintiffs cannot be ignored without a further hearing.
Among the many companies named in the suit are Johnson & Johnson (JNJ), Purdue Pharma Inc., McKesson (MCK), and AmerisourceBergen Corp (ABC), some of whom make drugs and some of whom distribute them. The suit alleges that the companies understated the risks of the drugs, overstated the benefits, and ignored suspiciously high volumes of the drugs being ordered.
President Trump and other officials have taken action to stamp out the opioid epidemic which has escalated to ghastly proportions, claiming around 100 American lives every day.
Parallels exist between the current lawsuit and the Big Tobacco case of the 1990s, in which governments were able to extract a $246 Billion settlement from tobacco companies. The tobacco-related claims partially involved the marketing techniques companies used and partially involved the knowledge that companies had about the detrimental affects of their products. The current lawsuit against pharmaceutical companies differs in that the products are only available with prescriptions.
The case is being heard in the US District court of Northern Ohio. Settlements outside of court are becoming increasingly likely, which may allow the companies to avoid any admission of wrongdoing.
JNJ saw its Stochastic Oscillator recovers from the overbought zone
The Stochastic Oscillator for JNJ moved out of overbought territory on March 04, 2026. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 59 similar instances where the indicator exited the overbought zone. In of the 59 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for JNJ moved out of overbought territory on March 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on March 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on JNJ as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for JNJ turned negative on February 23, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JNJ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JNJ advanced for three days, in of 354 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 259 cases where JNJ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. JNJ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.102) is normal, around the industry mean (9.311). P/E Ratio (21.795) is within average values for comparable stocks, (22.655). Projected Growth (PEG Ratio) (1.680) is also within normal values, averaging (2.275). Dividend Yield (0.022) settles around the average of (0.025) among similar stocks. P/S Ratio (6.200) is also within normal values, averaging (3.943).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an investment holding company with interests in health care products
Industry PharmaceuticalsMajor
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