Johnson & Johnson (JNJ, $138.03) shares plummet as $29 million lawsuit looms
With more than 13,000 existing lawsuits open, the most recent for New Jersey-based Johnson & Johnson is an accusation by a woman alleging asbestos in the company’s talcum products has caused her cancer. A California jury in Oakland has found the company guilty and has ordered it to pay $29 million to the victim.
The company, on the other hand, has denied such allegations claiming that its products are checked by experts and numerous studies and tests have already proved that their products are free from any cancer causing substance. The company will now appeal the verdict.
This is not the first of its kind. J&J has a long history of such allegations. A Los Angeles jury last year awarded $21.7 million to a woman who blamed her cancer on the powder. The company has lost a motion to appeal a verdict in Missouri that awarded more than $4 billion to 22 women who accused that the asbestos in the company’s talcum products is the reason for their ovarian cancer.
Following the current lawsuit, shares of the company have fallen sharply. Last summer, in a move to break away from its declining market share, the company launched its iconic baby product line. But the 124 year old company has fallen out of customer preferences that now have turned to cleaner, natural products from trendy upstart brands.
The company saw its shares climb just 8% since the beginning of 2019 and just 4% in past 12 months to clock a market cap of $371.3 billion.
JNJ sees its Stochastic Oscillator climbs out of oversold territory
On April 22, 2024, the Stochastic Oscillator for JNJ moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 55 instances where the indicator left the oversold zone. In of the 55 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where JNJ's RSI Indicator exited the oversold zone, of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for JNJ just turned positive on April 23, 2024. Looking at past instances where JNJ's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JNJ advanced for three days, in of 335 cases, the price rose further within the following month. The odds of a continued upward trend are .
JNJ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 03, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on JNJ as a result. In of 82 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 10-day moving average for JNJ crossed bearishly below the 50-day moving average on March 22, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 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 .
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 .
The Aroon Indicator for JNJ entered a downward trend on April 22, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (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 (5.528) is normal, around the industry mean (5.632). P/E Ratio (30.342) is within average values for comparable stocks, (48.974). Projected Growth (PEG Ratio) (0.968) is also within normal values, averaging (3.004). Dividend Yield (0.030) settles around the average of (0.164) among similar stocks. P/S Ratio (4.744) is also within normal values, averaging (3.643).
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
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.
The Tickeron Price Growth Rating for this company is (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.
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