With a market cap of $372.9 billion, Johnson & Johnson (JNJ) is a worldwide healthcare chief with a strong and diversified enterprise mannequin spanning prescribed drugs, medical applied sciences, and shopper well being merchandise. The corporate leverages innovation and one of many business’s largest R&D budgets to ship options throughout a variety of therapeutic areas.

Shares of the New Brunswick, New Jersey-based firm have underperformed the broader market over the previous 52 weeks. JNJ has elevated 3.8% over this time-frame, whereas the broader S&P 500 Index ($SPX) has gained 10.2%. Nonetheless, JNJ inventory has risen 7.2% on a YTD foundation, outperforming SPX’s 3.9% decline.

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Wanting nearer, the world’s largest maker of well being care merchandise has additionally outpaced the Well being Care Choose Sector SPDR Fund’s (XLV) 1.9% lower over the previous 52 weeks.

Regardless of Johnson & Johnson reporting better-than-expected Q1 2025 adjusted EPS of $2.77 and income of $21.9 billion, shares fell marginally on Apr. 15 because of considerations over declining Stelara gross sales, which dropped 33.7% year-over-year. The corporate additionally lowered its full-year adjusted EPS forecast to $10.50 – $10.70 because of dilution from the Intra-Mobile Therapies acquisition. Moreover, the inclusion of prices associated to new U.S. import tariffs beneath the Trump administration added additional uncertainty.

For the fiscal yr ending in December 2025, analysts anticipate JNJ’s adjusted EPS to develop 6.2% year-over-year to $10.60. The corporate’s earnings shock historical past is promising. It topped the consensus estimates within the final 4 quarters.

Among the many 23 analysts masking the inventory, the consensus ranking is a “Moderate Buy.” That’s primarily based on 10 “Strong Buy” scores, two “Moderate Buys,” and 11 “Holds.” 

This configuration is extra bullish than three months in the past, with eight “Strong Buy” scores on the inventory.

On Apr. 16, Morgan Stanley raised Johnson & Johnson’s worth goal to $169 and maintained an “Equal Weight” ranking after a Q1 beat and up to date 2025 income steerage. The agency famous that new product cycles are offsetting Stelara declines, whereas MedTech faces tariff impacts, and pharma tariff dangers stay unclear.

As of writing, JNJ is buying and selling under the imply worth goal of $170.09. The Road-high worth goal of $185 implies a modest potential upside of 19.4% from the present worth ranges.

On the date of publication, Sohini Mondal didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. For extra info please view the Barchart Disclosure Coverage right here.

The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.