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With a market cap of $352.5 billion, New Jersey-based Johnson & Johnson (JNJ) focuses on the healthcare sector. Renowned for its diversified approach, JNJ operates across pharmaceuticals, medical devices, and consumer products, touching lives globally. From the Americas to Europe, Asia, Africa, and Australia, this healthcare giant continually pushes boundaries, making strides in innovation and patient care. Johnson & Johnson is expected to announce its fiscal Q2 earnings before the markets open on Wednesday, July 17.
Ahead of the event, analysts expect Johnson & Johnson to report a profit of $2.73 per share, down 2.5% from $2.80 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters.
Its adjusted EPS for the last reported quarter increased 12.4% year over year to $2.71 per share, beating the consensus estimate by 2.7%, as sales in its medical devices business surged.
Looking ahead to fiscal 2024, analysts expect Johnson & Johnson to report an EPS of $10.62, up 7.1% from $9.92 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 2.7% annually to $10.91.
JNJ stock has dipped 6.6% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 16.7% gains and S&P 500 Healthcare Sector SPDR’s (XLV) 5.9% returns over the same time frame.
Johnson & Johnson's stock has struggled to keep up with the broader market, weighed down by several issues. Ongoing supply constraints at Carvykti, the loss of Stelara exclusivity, and financial hits from its subsidiary's potential bankruptcy added to the woes. On April 16, JNJ shares dipped 2.1% after a mixed Q1 earnings report. The healthcare titan is also offloading its Kenvue stake to refocus on core operations amid persistent stock declines and legal troubles over talcum powder.
The consensus opinion on Johnson & Johnson stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 20 analysts covering the stock, seven recommend a “Strong Buy,” two have a “Moderate Buy,” and 11 suggest a “Hold” rating.
The average target price for Johnson & Johnson is $172.22, indicating a potential upside of 17.6% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
