Johnson & Johnson (JNJ, $128.85) Loses Motion to Reverse a $4.7 Billion Verdict
Shares of the health-care conglomerate Johnson & Johnson dropped another 1% on Thursday. This happened after the company lost its motion to reverse a $4.7 billion jury verdict awarded to women who blamed ovarian cancer on asbestos in the company’s baby powder and other talc products.
According to the report published by New York Times, the ruling was upheld by a circuit court judge in Missouri, Rex Burlison, who oversaw the trial in the case. In his ruling Judge Rex Burlison said there was “substantial evidence” of “particularly reprehensible conduct” by J&J. He further added that the executives were also aware of the presence of asbestos in products that they knowingly targeted for sale to mothers and babies, knew of the damage that their products can cause, and misrepresented the safety of these products for decades.
With the stock now down nearly 13% so far this month, the company is inline to record its worst month since February 2009.
Losing this motion doesn’t mean that the $4.69 billion payout is imminent, as the company still has an entire set of appeals process to exhaust. But this ~$4.7 billion law suit, apart from the reputational damage, has also resulted into the company losing more than $50 billion in market value since damning articles were published by Reuters and The New York Times.
JNJ in downward trend: price dove below 50-day moving average on September 30, 2026
JNJ moved below its 50-day moving average on September 30, 2026 date and that indicates a change from an upward trend to a downward trend. In 18 of 32 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 56%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on JNJ as a result. In 41 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 49%.
The Moving Average Convergence Divergence Histogram (MACD) for JNJ turned negative on September 08, 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 47 similar instances when the indicator turned negative. In 20 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 43%.
The 10-day moving average for JNJ crossed bearishly below the 50-day moving average on October 05, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 53%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 40%.
The Aroon Indicator for JNJ entered a downward trend on October 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.47% 3-day Advance, the price is estimated to grow further. Considering data from situations where JNJ advanced for three days, in 165 of 354 cases, the price rose further within the following month. The odds of a continued upward trend are 47%.
JNJ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 6 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 10 (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously 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 (7.710) is normal, around the industry mean (19.199). P/E Ratio (31.549) is within average values for comparable stocks, (34.793). Projected Growth (PEG Ratio) (2.852) is also within normal values, averaging (5.738). Dividend Yield (0.019) settles around the average of (0.025) among similar stocks. P/S Ratio (6.658) is also within normal values, averaging (4.033).
The Tickeron SMR rating for this company is 37 (best 1 - 100 worst), indicating 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 Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. JNJ’s price grows at a higher rate over the last 12 months as compared to 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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