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.
Momentum Indicator for JNJ turns positive, indicating new upward trend
JNJ saw its Momentum Indicator move above the 0 level on July 23, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned positive. In of the 81 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
JNJ moved above its 50-day moving average on June 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JNJ advanced for three days, in of 347 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 245 cases where JNJ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for JNJ moved out of overbought territory on July 08, 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 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for JNJ turned negative on July 14, 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 .
JNJ broke above its upper Bollinger Band on June 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
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 64, 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 PE Growth Rating for this company is (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 (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 (7.468) is normal, around the industry mean (19.724). P/E Ratio (30.557) is within average values for comparable stocks, (28.591). Projected Growth (PEG Ratio) (4.355) is also within normal values, averaging (4.232). Dividend Yield (0.020) settles around the average of (0.031) among similar stocks. P/S Ratio (6.562) is also within normal values, averaging (4.182).
The Tickeron SMR rating for this company is (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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an investment holding company with interests in health care products
Industry PharmaceuticalsMajor
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