Go to the list of all blogs
Serhii Bond's Avatar
published in Blogs
Jun 07, 2023

Swing vs Trend: JNJ (3.04%) and MRK(6.71%) Performance Comparison & Future Predictions

Based on the provided information, it appears that the Swing Trader strategy focusing on medium volatility stocks for active trading has generated a return of 3.04%. On the other hand, the Trend Trader strategy concentrating on popular stocks, utilizing both technical analysis (TA) and fundamental analysis (FA), has achieved a return of 6.71%.

Here's a breakdown of the comparison:

  1. Strategy Focus:

    • Swing Trader: The focus is on medium volatility stocks. This indicates that the strategy seeks to take advantage of price fluctuations in stocks that exhibit moderate price swings.
    • Trend Trader: The focus is on popular stocks. This implies that the strategy identifies and trades stocks that are currently in favor or experiencing upward momentum.
  2. Return on Investment:

    • Swing Trader: The return generated by this strategy is 3.04%. This means that for every dollar invested, the strategy has yielded a profit of approximately 3.04 cents.
    • Trend Trader: The return achieved by this strategy is 6.71%. This indicates that for every dollar invested, the strategy has generated a profit of around 6.71 cents.
  3. Approach:

    • Swing Trader: The strategy likely combines both technical analysis (TA) and fundamental analysis (FA). Technical analysis involves analyzing price charts, patterns, and indicators to identify potential trading opportunities. Fundamental analysis involves evaluating a company's financial health, industry trends, and other relevant factors to determine its intrinsic value.
    • Trend Trader: The strategy also utilizes both technical analysis (TA) and fundamental analysis (FA). This means that it likely employs similar methods as the Swing Trader strategy in terms of analyzing price trends and company fundamentals.

Based on the provided returns, the Trend Trader strategy has outperformed the Swing Trader strategy, achieving a higher return on investment. However, it's important to note that this comparison is based solely on the given returns and does not take into account other factors such as risk management, trading costs, market conditions, or the time period over which the returns were generated. Therefore, further analysis would be required to fully evaluate the effectiveness and suitability of these trading strategies.

When delving into the robust pharmaceutical industry, one can't overlook the performances of prominent players Johnson & Johnson (JNJ) and Merck & Co. (MRK). Both these behemoths have made considerable strides in this highly competitive sector, showing distinctive trading styles and presenting opportunities for different types of traders.

Starting with a swing trading perspective, JNJ with a medium volatility rating of 3.04%, posted a weekly price growth of 1.70%. This outperformed the average weekly price growth of 1.11% across the entire Major Pharmaceuticals industry. With its relatively moderate fluctuations, JNJ represents an appealing choice for active traders who thrive on leveraging price swings over a short period. The company's imminent earnings report on July 20, 2023, is anticipated to offer further insights into its financial health and potential future trading volatility.

In contrast, trend traders might find MRK more fitting to their trading style. As a highly popular stock in the market with a 6.71% volatility rating, MRK exhibited a weekly price growth of 1.31%. Despite this figure being slightly below JNJ's growth, it still surpassed the industry's average. This growth, combined with the upward trajectory often favored by trend traders, paints a compelling picture for MRK. Investors and traders alike will be keenly awaiting MRK's earnings report due on August 01, 2023, as it may hint at future price trends.

Reflecting on the broader industry context, it is crucial to note that the average monthly price growth in the Major Pharmaceuticals industry was negative, at -0.41%. However, the industry rebounded with quarterly price growth of 1.37%. This recent uplift indicates a potential shift in momentum that could benefit both JNJ and MRK, suggesting the industry is on a recovery path.

A noteworthy aspect of the comparative analysis of these two giants is their correlation. JNJ and MRK show a loose correlation of 62%, indicating that while they often move in the same direction, their movements are not identical. This level of correlation offers diversification benefits to an investor's portfolio.

Both JNJ and MRK showcase intriguing prospects in their distinctive ways. Swing traders may find the medium volatility and consistent growth of JNJ attractive, while trend traders could be drawn to MRK's popularity and greater volatility. Given the signs of recovery in the Major Pharmaceuticals industry and upcoming earnings reports, both stocks warrant careful observation in the coming weeks.

Related Ticker: JNJ

JNJ in upward trend: price may ascend as a result of having broken its lower Bollinger Band on August 21, 2023

JNJ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 41 cases where JNJ's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .

Price Prediction Chart

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 Oscillator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Momentum Indicator moved above the 0 level on September 18, 2023. You may want to consider a long position or call options on JNJ as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for JNJ just turned positive on September 13, 2023. 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 331 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where JNJ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

JNJ moved below its 50-day moving average on August 28, 2023 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for JNJ crossed bearishly below the 50-day moving average on August 31, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 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 September 15, 2023. 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)

Fear & Greed

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 67, placing this stock better than average.

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 (5.219) is normal, around the industry mean (6.210). P/E Ratio (33.003) is within average values for comparable stocks, (31.951). Projected Growth (PEG Ratio) (5.206) is also within normal values, averaging (3.124). Dividend Yield (0.029) settles around the average of (0.028) among similar stocks. P/S Ratio (4.407) is also within normal values, averaging (3.770).

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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. JNJ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

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.

Notable companies

The most notable companies in this group are Eli Lilly & Co (NYSE:LLY), Johnson & Johnson (NYSE:JNJ), Merck & Co (NYSE:MRK), ABBVIE (NYSE:ABBV), AstraZeneca PLC (NASDAQ:AZN), Pfizer (NYSE:PFE), Amgen (NASDAQ:AMGN), Bristol-Myers Squibb Co (NYSE:BMY), Gilead Sciences (NASDAQ:GILD), Biogen (NASDAQ:BIIB).

Industry description

The Major Pharmaceuticals industry includes companies that are involved in various processes of creating drugs to treat/prevent diseases. These companies engage in research, testing and manufacturing, as well as the distribution of pharmaceuticals into markets. Johnson & Johnson, Merck & Co., Inc., Pfizer Inc. and Novartis are among the largest companies in this category.

Market Cap

The average market capitalization across the Pharmaceuticals: Major Industry is 81.05B. The market cap for tickers in the group ranges from 72.83K to 540.76B. LLY holds the highest valuation in this group at 540.76B. The lowest valued company is CRXTQ at 72.83K.

High and low price notable news

The average weekly price growth across all stocks in the Pharmaceuticals: Major Industry was -1%. For the same Industry, the average monthly price growth was -2%, and the average quarterly price growth was 1%. GIFOF experienced the highest price growth at 6%, while SCLX experienced the biggest fall at -24%.

Volume

The average weekly volume growth across all stocks in the Pharmaceuticals: Major Industry was -19%. For the same stocks of the Industry, the average monthly volume growth was -64% and the average quarterly volume growth was 3%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 28
P/E Growth Rating: 59
Price Growth Rating: 50
SMR Rating: 57
Profit Risk Rating: 67
Seasonality Score: -17 (-100 ... +100)
View a ticker or compare two or three
Technical Analysis# Of IndicatorsAvg. Odds
   
   
Show details...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

an investment holding company with interests in health care products

Industry PharmaceuticalsMajor

Profile
Fundamentals
Details
Industry
Pharmaceuticals Major
Address
One Johnson and Johnson Plaza
Phone
+1 732 524-0400
Employees
152700
Web
https://www.jnj.com
Interesting Tickers
1D
1W
1M
1Q
6M
1Y
5Y
1 Day
STOCK / NAMEPrice $Chg $Chg %
PHI19.770.60
+3.13%
PLDT
PSX120.07-0.15
-0.12%
Phillips 66
MFA10.56-0.11
-1.03%
MFA Financial
SDIG4.56-0.16
-3.39%
Stronghold Digital Mining
ARL14.90-0.74
-4.73%
American Realty Investors

JNJ and

Correlation & Price change

A.I.dvisor indicates that over the last year, JNJ has been loosely correlated with MRK. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if JNJ jumps, then MRK could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To JNJ
1D Price
Change %
JNJ100%
+0.44%
MRK - JNJ
62%
Loosely correlated
-0.05%
PFE - JNJ
59%
Loosely correlated
-1.09%
AMGN - JNJ
48%
Loosely correlated
+2.71%
ABBV - JNJ
44%
Loosely correlated
+0.08%
BMY - JNJ
44%
Loosely correlated
+0.26%
More
Artificial intelligence (AI) technology is developing rapidly.Data mining can deliver raw numbers, but it does not necessarily provide actionable insights. Structure is necessary to taking abstract information and extracting commonalities, like averages, ratios, and percentages.
You have enough faith in that stock, based on research, that the return will equal or exceed the investment.  Do unto others.The principles outlined here will ensure that happens.  Principle #1: Diversification Investors can’t be one-dimensional when constructing a portfolio.
Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements. The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets.Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.
Where smaller, more volatile companies can placate shareholders with higher returns, larger companies often use dividend payouts to entice new investors and hold their existing ones. These low-risk options may not work for every investment approach, but dividend-producing stocks can offer great benefits under the right circumstances – especially for portfolios built for the long-term.Beyond the ability to rely on these semi-regular payouts as an income stream – a strategy favored by retirees – dividends are an excellent vehicle for compounding earnings through reinvestment.
Artificial intelligence (AI) and fintech have an inherent compatibility that has become clearer as each sector has matured, with recent growth and successes on their own accord bringing new ideas about how they can work together.AI can analyze information at far greater quantities (and far more quickly) than any human, making it a natural fit to help fintech firms streamline and automate processes that benefit customers and businesses alike. Fintech has brought a revolution of convenience to the finance world.
You’ve set up your bitcoin wallet and have acquired some bitcoins, and now you’re ready to use them – what’s next?But be VERY careful to double- or triple-check that the address is correct – crypto transactions are irreversible, and a typo almost certainly means permanently losing the bitcoins you were trying to send. One way to avoid potential slip-ups is to scan a QR code (when available) for the destination address.
Mainstream acceptance has come in fits and starts, with regulatory approval proving hard to come by for a variety of reasons – not least of which the ever-present risk of theft via hacking or other means, which pose an especially large obstacle to attracting investment from mainstream institutions. Because crypto holdings are only accessible via a specific private key, they are susceptible to loss – literally, if the key is written on a piece of paper or a physical hard drive, methods of offline ‘cold storage’ – or through hacks if held in an online wallet.Reuters reports that over $800 million in crypto assets were stolen in the first half of 2018, creating justifiable concern for both owners and mainstream financial institutions alike. Some type of insurance coverage would potentially mitigate the risks inherent to owning crypto assets – if insurers are willing to play ball.
Don't fall prey to common financial traps that can derail your financial planning efforts. In this article, we highlight four traps to keep in mind, including the importance of refinancing rather than consolidating student loans and credit card debt, prioritizing debt repayment over investments, limiting news consumption, and understanding the true costs of buying a home. Learn how AI tools from Tickeron can help investors make informed decisions and achieve their investment objectives.
Paper wallets are extremely useful tools – beyond being one of the most popular and secure cold storage methods, they make it simple to transfer coins between owners.You can access the funds on your paper wallet by “sweeping” (or importing) them to either a live wallet (like Trezor or Exodus) or an exchange service (like Coinbase). Most services allow you to import them directly from your wallet’s private key, but there are two key exceptions.
Get ready to revolutionize your investment strategy! Discover 3 cutting-edge ways to get fresh and innovative investment ideas, and say goodbye to relying on unreliable sources like CNBC. From utilizing advanced AI tools to sharing your portfolio with trusted friends, these methods are sure to boost your investment game. So, what are you waiting for? Read on to find out how you can start generating new ideas today!
You’re a trader, not an investor. It’s important that you understand the difference before choosing an actual trading style. Traders perform their magic over shorter periods of time, sometimes within minutes or hours. Investors are more passive. They purchase equities and hold them for months or years, relying on a long-term return. Traders evaluate buys and sells based on technical analysis...
Looking to invest your money in the stock market? While leaving your money there for a few years can yield a ten percent return, real traders know that actively trading and using derivatives is the way to make a significant profit while minimizing risk. Derivatives are contracts between two parties that are based on the price of a financial asset, such as a stock or bond. The value of the...
Zoom (ZOM), the video conferencing giant, registered a three-day uptrend of +1.84%. Our proprietary AI trading bot identified an intraday gain of 6.75%, attributing it to robust market sentiment and promising growth indicators. This uptrend signals a potentially strong position for investors and stakeholders. A deeper analysis could provide crucial insights into the future performance of ZOM. Stay updated for further analytics and forecast from our AI tools.
The Swing Trader: Volatility Balanced Strategy (TA) AI trading robot has emerged as a remarkable performer. Operating within our robot factory, this trading algorithm has recently demonstrated its prowess by generating a notable gain of 3.74% while trading ZIM (ZIM Integrated Shipping Services Ltd) over the previous week. This article aims to delve into the technical analysis surrounding ZIM's recent performance and the potential for an impending price rebound.
AI trading robot, the Swing trader: Volatility Balanced Strategy (TA), has stood out as a performer in our robot factory. In the previous week, it achieved an impressive 3.78% gain while trading AFRM (Affirm Holdings Inc.), a notable stock in the market. In this article, we will delve into the technical analysis of AFRM's recent movements and explore the implications of its earnings results.
Among them, the Swing Trader: Volatility Balanced Strategy (TA) stands out as a top-performing AI trading robot. In the previous week, this robot demonstrated its prowess by generating an impressive 3.60% gain while trading NET (stock ticker symbol) – a remarkable achievement. This article delves into the reasons behind the success of Swing Trader, focusing on the positive Moving Average Convergence Divergence (MACD) indicator and the recent earning results of NET.
The Swing Trader: Volatility Balanced Strategy (TA), has caught our attention for its impressive performance. Last week, it generated a remarkable gain of 3.56% while trading RIOT, a prominent stock. In this article, we will delve into the analysis of RIOT's recent bearish trend and examine the company's earnings results, which exceeded expectations.
The Swing Trader: Volatility Balanced Strategy (TA) AI trading robot has emerged as a top performer in our robot factory, demonstrating exceptional performance and generating significant gains. In the previous week, this intelligent trading bot achieved a remarkable 3.56% gain while trading WKHS (Workhorse Group Inc.) - an achievement worth noting. Coupled with positive market indicators, WKHS presents an intriguing opportunity for potential future growth.
AI trading robot, known as "Swing trader: Volatility Balanced Strategy (TA)," has caught the attention of traders and investors alike. In the previous week, this AI robot, developed in our esteemed robot factory, demonstrated impressive performance by generating a gain of 3.51% while trading DKNG. This article will delve into the recent trading activity, the significance of the stock's upward trend, and analyze the latest earnings results of DKNG.
One such tool that has garnered attention is the AI trading robot known as Swing trader: Volatility Balanced Strategy (TA). This robot, developed in our esteemed factory, recently demonstrated its prowess by generating a notable 3.02% gain while trading CHPT (ChargePoint Holdings) over the previous week. While CHPT experienced a downward trend, the robot's performance and insightful analysis provide valuable insights for traders and investors alike.