It’s no secret that defensive names in today’s stock market, those not known for their hot price action or great return potential, have been the lackluster part of the financial markets lately. This is because the technology sector and some of the most beloved names in this space have been at the center of attention throughout 2023 and 2024. However, this may change in 2025.
Johnson & Johnson today
Johnson & Johnson
- 52 week range
- $140.68
▼
$168.85
- Dividend yield
- 3.38%
- P/E ratio
- 22.07
- Price target
- $170.06
According to Goldman Sachs analysts, the potential for broader tail risks in the broader S&P 500 is emerging, implying that rising volatility may have a tighter grip on investor and market behavior in the near future. This means that there could be a systematic shift back to some of these safer – and discounted – names out there, and investors will now see how a few participants have already taken that view within the consumer staples sector.
With a mix of healthcare and non-cyclical products, shares Johnson & Johnson New York Stock Exchange: GNG It is now of interest to the trader, not just any type of trader. There’s a big difference between someone who buys a stock outright from a bullish point of view and someone who decides to buy call options in the name, which means the direction and timing of the move is inevitable.
Business activity behind Johnson & Johnson’s stock decline
Now that the stock is down 87% from its 52-week high after declining as much as 11.5% over the past quarter, some traders are calling this $146.6 technical level support for a stock that should be bought frequently, as it was again last year. . Q3 2023. With that confidence in mind, here’s a trade that could prompt retail investors to follow suit.
Just finished 13,000 call options were purchased For Johnson & Johnson in the days following its decline to the support level above, it is a sign that traders are confident not only in the stock’s recovery but also in the timing of this fundamental move higher. Main Street should not ignore this level of conviction; there must be a reason behind it.
To get a preliminary idea, investors can look at Johnson & Johnson stock’s low beta of just 0.50. If Goldman Sachs is right in his opinion Macro Forecast Report 2025 In terms of tail risk in the S&P 500, some capital may start to make its way into a less volatile name like this one.
In fact, some institutional buyers have already gotten ahead of the curve here. Those from Swedbank decided to boost their holdings in Johnson & Johnson shares by up to 2.1% from January 2025, bringing their net position to a high of $326.9 million today.
Or those from Robeco Institutional Asset Management, which raised their stakes by 17.3% as of the same period, bringing their net position to $235.9 million. These are signals that investors should take when building their bullish thesis on Johnson & Johnson stock, but it doesn’t stop there.
Market position on Johnson & Johnson shares
When consulting with Wall Street analysts, the signs become clear as to why these traders — and institutional investors — have started 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
15.87% upHe 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 generate $2.68 in EPS over the next 12 months, a significant increase of 31.3% from today’s $2.04. Since stock prices are typically driven by underlying earnings growth, the stage is set for a potential bottom in the stock to start building for a future rally.
That’s also why analysts at Royal Bank of Canada decided to reiterate their outperformance rating on Johnson & Johnson shares today, placing a $181 per share valuation on the company. To prove the new view valid, the stock would have to rise as much as 23.5% from where it trades today, let alone a new 52-week high.
Furthermore, if the stock takes a little longer to see price action develop, proving put option traders wrong, shareholders have another hidden benefit by holding on to Johnson & Johnson shares today. Due to the company’s low financial volatility, management is able to maintain a dividend of $4.96 per share.
On an annual basis, this represents a dividend yield of up to 3.4% for investors, allowing them to outperform current inflation rates in the US economy.
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