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's Stochastic Oscillator is staying in oversold zone for 9 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.
Technical Analysis (Indicators)
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 341 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 227 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 March 11, 2025. 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 Momentum Indicator moved below the 0 level on March 11, 2025. 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 Moving Average Convergence Divergence Histogram (MACD) for JNJ turned negative on March 11, 2025. 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 February 19, 2025. 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.
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 (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 (0.161) among similar stocks. P/S Ratio (4.744) is also within normal values, averaging (3.643).
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 74, placing this stock better than average.
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 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 consistent 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued 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