Market and
partners news

Uncategorized
Analysis of Johnson & Johnson

Analysis of Johnson & Johnson

10 August 2022

Johnson & Johnson: it is necessary to wait for the signal 

A player of a huge scale, a structure of more than 250 subsidiaries, a vertically integrated holding consisting of the production of sanitary and hygienic goods, medicines, as well as medical and social equipment. This is Johnson & Johnson. The business earns from sales in the consumer segment of the market (17%), in the pharmaceutical (51%) and medical devices sector (32%). 

The company has relied on a diversified business model, which allows it to maintain stability in almost any market scenario. 

Johnson & Johnson has presented its quarterly report. Its strengths:

  • EPS of $2.59 per share, above expectations;
  • revenue +3.0% YoY to $24 billion;
  • pharmaceutical sector revenue +7% YoY to $13.3 billion.

There are weak spots – for example, a 1% reduction in sales of medical equipment by the sector in the second quarter to $6.9 billion. In addition, it is worth paying attention to the company’s reduction in expectations for adjusted net profit for 2022 to $10 per share, revenue to $93.3-94.3 billion. 

However, in general, the main reporting indicators came out better than forecasts, which allows us to maintain a positive outlook on the prospects of the company’s shares. 

The consensus estimate for Johnson & Johnson securities is $190-197 at the end of 2022.

On the daily chart, the MACD indicator is still declining in the negative zone and does not form a buy signal. The Stochastic oscillator is declining, approaching the oversold zone, after which it will be able to turn up and begin forming a buy signal. The technical picture does not yet give a clear signal for acquisitions, it is worth waiting for a more successful situation.

Send an application

    Full Name

    Phone

    Additional

    ARAVANA Capital management
    10 August 2022
    Pros and cons of buying a home in Turkey

    At the beginning of 2023, the General Directorate of the Land Cadastre of Tur...

    Bahrain may introduce corporate income tax 

    For a long time, Bahrain was rightfully considered the most important offshor...

    Which foreign sources of income will be taxed in Qatar

    Income received from foreign sources was not previously included in income ta...

    Legal support of purchase and sale of Russian companies

    M&A (mergers and acquisitions) is the process of combining the assets of ...