Will Johnson & Johnson (JNJ, $128.83) Lose Investor Interest in the Long Run?
Johnson & Johnson’s fourth quarter results reveal that sales were up just 1% to $20.4 billion, with adjusted net income coming-in at just $5.37 billion, which is $1.97 per share. These results gave evidence of gradual slowing compared to what this healthcare giant has witnessed in revenue growth recently.
A few items played significant roles in hurting J&J’s growth. Decreasing sales in certain quarters owing to negative currency effects; the net impact of acquisitions and divestitures during the year also affected performance without which worldwide sales would have risen 5.5%, with international sales climbing 7.8% and U.S. sales rising by 3.4% on an operational basis.
J&J’s pharmaceutical segment emerged as the market leader in 2018 and registered recorded sales after growing by 5.3%. But areas like neuroscience and cardiovascular still remain weak spots for the company. The consumer segment also saw an overall sales decline of 0.1%, while revenue in the wound care and baby care took the biggest hit.
Guidance indicates that the company expects to deliver sales in the range of $80.4 billion and $81.2 billion for 2019, and that's keeping the investors hopeful. It represents operational growth of just 0% to 1%, and even after making adjustments to those figures, growth could be limited to only 2% to 3% for the year.
In addition to poor sales growth, legal issues are also a concern. Litigation expenses almost doubled last year, owing to allegations from customers regarding safety issues with the company’s talc powder products that may be unfavorable for future customers.
What is more concerning now is that if the pharmaceutical segment fails to generate revenue, there is little for the company to attract investors.
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
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where JNJ's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
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 246 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 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 63, 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 (7.686) is normal, around the industry mean (19.745). P/E Ratio (30.078) is within average values for comparable stocks, (28.431). Projected Growth (PEG Ratio) (4.287) is also within normal values, averaging (4.206). Dividend Yield (0.020) settles around the average of (0.031) among similar stocks. P/S Ratio (6.460) is also within normal values, averaging (4.171).
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 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
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