It’s no secret that defensive names in today’s stock market, names not known for their hot plays or wild return potential, have been a lackluster segment of the financial markets lately. This is because the center of attention has been taken by the technology sector and some of the darling names in this field throughout 2023 and 2024. However, this may change in 2025.
Johnson and Johnson today
Johnson and Johnson
- 52 week range
- $140.68
▼
$168.85
- Dividend yield
- 3.38%
- P/E ratio.
- 22.07
- Target price
- $170.06
According to Goldman Sachs analysts, the potential for broader risk tails on the broader S&P 500 index, meaning increased volatility could have a tighter grip on investor and market behavior in the near future. This means that there could be a systematic shift to some of these safer, discounted names out there, and investors will now see how a few participants have already taken this view within the consumer food sector.
With a mix of healthcare and non-cyclical products, stocks from Johnson and Johnson New York: JNJ It now becomes the subject of the trader’s attention, not just any type of trading. There is a big difference between someone who buys a stock outright from a bullish point of view and someone who decides to buy call options on the name, which means the direction and timing of the move is inevitable.
The trading activity behind Johnson & Johnson Stock’s decline
Now that the stock is down 87% from its 52-week high after falling as much as 11.5% over the past quarter, some traders are calling this $146.6 technical level support for the stock on repeat, as it returns in the third quarter of 2023. With the position With that confidence in mind, here’s a trade that might send retail investors into action.
More than that 13,000 call options were purchased For Johnson & Johnson the days since it retreated to the support level above are a sign that traders are confident not only in the stock’s recovery but also in the timing of the underlying move. The high street should not ignore this level of condemnation, as there must be a reason behind it.
To get an initial idea, investors can look to Johnson & Johnson Stock’s low beta of just 0.50. If Goldman Sachs is right 2025 Macro Forecast Report About the tail risk in the S&P 500, some capital may start its way into a less volatile name like this.
In fact, some institutional buyers have already gotten ahead of the curve here. Those from Swedbank decided to boost their holdings in Johnson & Johnson by up to 2.1% from January 2025, bringing their net worth to $326.9 million today.
Or those from Robeco’s Institutional Asset Management, which raised risk by 17.3% as of the same period, valuing their position at $235.9 million. These are signs for investors when building their bullish thesis on Johnson & Johnson stock, but they don’t stop there.
The market is mocking Johnson & Johnson stock
When consulting with Wall Street analysts, the signs became clear as to why these traders — and institutional investors — decided to start buying Johnson & Johnson stock recently. For starters, investors can look at earnings per share (EPS) forecasts for the same quarter next year.
Johnson & Johnson stock forecast today
$170.06
He catches
Based on 17 analyst ratings
| High expectations | $215.00 |
|---|---|
| Average expectations | $170.06 |
| Low expectations | $150.00 |
Johnson & Johnson stock forecast details
This forecast suggests the company could achieve $2.68 in EPS for the next 12 months, a significant increase of 31.3% from $2.04 today. Since stock prices are typically driven by fundamental earnings growth, the stage is set for a potential bottom in stocks to start building for a future rally.
This is also why analysts at Royal Bank of Canada decided to reiterate their outperform rating on Johnson & Johnson shares today, offering a $181 per share valuation for the company. To prove this new view correct, the stock would have to rally as much as 23.5% from where it is trading today, not to mention a new 52-week high.
What’s more, if the stock takes a little longer to see price action, proving option traders wrong, shareholders have another hidden benefit by holding on to Johnson & Johnson stock today. Given the company’s low financials, management is able to maintain a dividend payment of $4.96.
On an annualized basis, this represents a dividend yield of up to 3.4% for investors, allowing them to outperform current inflation rates in the US economy.
Before you consider Johnson & Johnson, you’ll want to hear this.
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