It’s no secret that in the stock market today, defensive names that are not known for their hot price action or wild return potential have been the weakest segment of the financial markets as of late. This is because the spotlight has been taken by the technology sector and some of the expensive names in this space 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
- VALUE VALUE
- $170.06
The potential for broader tail risks in the broader S&P 500 index is emerging, Goldman Sachs analysts said, implying that increased volatility could have a stronger link to investor and market behavior in the near term. This means there could be a systematic shift to some of these safer – and discount – names, and investors will now see several players have already adopted this view in the consumer staples sector.
With a combination of healthcare and non-cyclical products, promotions Johnson and Johnson NYSE:JNJ have now become the focus of the trader, and not just any type of trader. There is a big difference between someone buying a stock from a direct point of view and someone who decides to buy name calling options, that is, the direction and timing of the move is inevitable.
Trading activity for falling Johnson & Johnson shares
Now that the stock is down to 87% of its 52-week high after being down 11.5% over the past quarter, some traders are calling this $146.6 technical level as support for the stock to buy multiple times as it has returned in the third quarter of 2023. With that confidence, here’s a trade that may highlight retail investors in the following example.
Just over 13,000 call options were bought for Johnson & Johnson in the days following its decline to the above support level, a sign that traders are confident not only in the stock’s recovery, but also in the timing of that underlying move higher. The high street should not ignore this level of condemnation as there must be a reason.
To get an initial idea, investors can look to Johnson & Johnson Stock’s low beta of just 0.50. If Goldman Sachs is in its 2025 Macro Outlook report on tail risk in the S&P 500, then some capital could start to flow into a less volatile name like this.
In fact, some institutional buyers are already ahead of the curve here. Those at Swedbank decided to increase their Johnson & Johnson shares by 2.1% as of January 2025, bringing their net position to $326.9 million today. USA today.
Or those from Robeco Institutional Asset Management, which raised rates by 17.3% as of the same period, increasing its position to $235.9 million. USA. These are signs for investors to embrace their bullish thesis on Johnson & Johnson stock, but they don’t stop there.
The market entered Johnson & Johnson shares
When Wall Street analysts were consulted, the signs are becoming clear as to why these traders – and institutional investors – decided to recently start buying into Johnson & Johnson shares. To start, investors can look at earnings per share (EPS) estimates for the same quarter next year.
Johnson & Johnson stock forecast today
$170.06
15.87% growthHold
Based on 17 analyst ratings
| High forecast | $215.00 |
|---|---|
| Average forecast | $170.06 |
| Low forecast | $150.00 |
Johnson & Johnson Stock Forecast Details
These forecasts suggest the company could reach $2.68 in shares over the next 12 months, up significantly to 31.3% from $2.04 today. Since stock prices are typically driven by underlying earnings growth, the stage is set for a potential bottom in the stock to begin construction for a future rally.
That’s why analysts at Royal Bank of Canada decided to reiterate their Outperform rating on Johnson & Johnson shares today, with a valuation of up to $181 per share for the company. To prove this new point correct, the stock would have to rally as much as 23.5% from where it trades today, not to mention a new 52-week high.
What’s more, if the stock takes a little longer to see price action develop, proving wrong call options traders, shareholders have another hidden advantage by holding Johnson & Johnson stock today. Given the company’s low-volatility financial data, management may support a dividend payment of $4.96 per share.
On an annual basis, this represents a dividend yield of up to 3.4% for investors, allowing them to outpace current inflation rates in the United States economy.
Before you consider Johnson & Johnson, you’ll want to hear this.
Marketbeat tracks the top and best-performing analysts with top-performing Wall Street analysts and the stocks they recommend to their clients daily. Marketbeat has identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes over… and Johnson & Johnson wasn’t on the list.
While Johnson & Johnson currently has a “Hold” rating among analysts, the top-rated analysts consider these five stocks to be Outperform Buys.
View five stocks here
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