Strong pharmaceutical growthJohnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturing company. Includes more than 275 companies that sell its products in almost all countries of the world.
Newsflow:
Recently some good news for Johnson & Johnson!!! First of all, the Superior Court of California tossed the the record breaking cancer verdicts against J&J. This saves the company from a penalty payment up to 400 million US-Dollar.
Secondly, the company reported on October 17, 2017 Third-Quarter Results.
Sales of $19.7 Billion Increased 10.3% versus 2016. EPS was $1.37. Adjusted Third-Quarter EPS of $1.90 increased 13.1%.
Based on 17 analysts offering 12 month price targets for JNJ in the last 3 months:
The average price target of 147 US-Dollar
The maximum price target of 165 US-Dollar
The lowest price target of 110 US-Dollar
Today J&J’s stock price is about 142 US-Dollar a share.
Fundamental Data:
P/E ratio: 23.57 / Sales growth: 2.59% / Profit growth: 7.34% / Dividend: $3.15/2.21% (Source: teletrader).
Chart Tools:
What say the technical analysis methods I use?
Oscillator: The RSI of Johnson&Johnson breaks the overbought line and still forwarding in an upward direction. I consider this situation in short-term as slightly negative or neutral.
Trend indicator: In the chart with the yellow eclipse was marked the situation, when the MACD line crosses to the upside of the 9 EMA and that was a bullish opportunity setting up. MACD of Johnson&Johnson is still in the positive zone and rises above the 9-period EMA line and indicates an upward trend.
CONCLUSION:
Johnson & Johnson won on a court issue and saved 400 million US-Dollar !!!
Further, the company accelerated growth in the third quarter. This is driven by the strong performance of the Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth, said Alex Gorsky, Chairman and Chief Executive Officer.
The fundamental growth of Johnson&Johnson is impressive! Chart-based indicators as RSI and MACD show more negative picture, because they both indicate an overbought situation for short-term traders.
Johnson & Johnson promises pure tension! An entry into a position-trade will be evaluated in the next few days depending on the chart situation!
Stay tuned for updates!
Disclosure:
“The trading ideas published here are neither to be understood as a recommendation nor as an offer or an invitation to buy or sell financial instruments and should not be understood as such.
You must also assume that the author holds the recommended position in his portfolio and benefits from the implementation of his trading ideas.”
