J&J Braces For Q1 Earnings With Bearish Charts And Patent Cliffs In Play
Portfolio Pulse from Surbhi Jain
Johnson & Johnson (NYSE:JNJ) is set to report Q1 earnings on April 16 with expectations of $2.64 EPS and $21.4 billion in revenues. The stock has declined approximately 9.54% over the past year and 5.88% YTD, amid concerns over patent cliffs and competition. However, J&J is making strategic acquisitions to strengthen its cardiac and MedTech segments. Technical analysis shows a bearish trend, with the stock below key moving averages and indicators suggesting bearish sentiment but also noting it as oversold. Analyst consensus rates J&J as Neutral with a price target of $171.95, while Cantor Fitzgerald and RBC Capital project a potential 37.15% upside to $203.67.
April 15, 2024 | 8:47 pm
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NEUTRAL IMPACT
J&J faces a bearish market sentiment as it approaches Q1 earnings, with technical indicators and analyst ratings suggesting potential short-term volatility but also highlighting acquisition strategies to mitigate revenue threats.
The bearish technical setup and year-to-date performance suggest short-term pressure on JNJ's stock price. However, strategic acquisitions and the potential upside indicated by analysts could mitigate some of the negative sentiment. The Neutral consensus and significant potential upside suggest a balanced view, making the short-term impact neutral as the market may have already priced in the negatives.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100