Important note

This AI stock analysis for Johnson & Johnson is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Johnson & Johnson - AI Stock Analysis

Analysis generated November 29, 2024

Johnson & Johnson (JNJ) is a multinational corporation founded in 1886. It is engaged in the research, development, manufacturing, and sale of a broad range of healthcare products. The company operates through three segments: Consumer Health, Pharmaceutical, and Medical Devices. Headquartered in New Brunswick, New Jersey, J&J is a prominent leader in the healthcare industry, known for its innovative medicines, medical devices, and consumer products.

Fundamental Analysis

The revenue for Johnson & Johnson in the last quarter was $22.5 billion. This marks an increase of 0.11% compared to the previous quarter, showing a slight but positive sign of growth. Year-over-year, the company experienced a revenue increase of 6.20%, highlighting potential stability and continuous market demand for its products.

However, net income for the last quarter was $2.69 billion, which is a significant decline of 42.51% compare to the previous quarter, and a dramatic decrease of 89.65% year-over-year. This steep decline may indicate potential challenges in cost management, increased expenses, or other underlying issues.

The EBITDA stood at $5.04 billion, representing a decrease of 22.15% compared to the previous quarter, and a substantial drop of 82.16% year-over-year. The declines in both net income and EBITDA are concerning and suggest that the company might be facing financial headwinds that need to be addressed promptly.

The current P/E ratio is 25.69. A higher P/E ratio can often indicate that a stock is overvalued, and in this case, it may suggest a bearish outlook. This ratio suggests that investors are expecting higher earnings growth in the future, but it also warrants cautious monitoring given the financial performance noted above.

Technical Analysis

Johnson & Johnson's stock is currently priced at $155.38. This marks a decrease of 2.94% compared to a month ago, indicating a concerning short-term drop in stock price. However, on a longer-term basis, the stock has grown by 2.83% compared to a year ago, suggesting a more positive long-term trend.

The stock's trend is bullish. The current SMA10 is $155.06, higher than the previous SMA10 of $154.82, which signals a potential upward movement in price. The RSI stands at 59.9, which reflects a neutral condition, indicating that the stock is neither overbought nor oversold at the moment.

Alternative Data Analysis

Looking at job postings and employee sentiment, Johnson & Johnson currently has 914 open positions, which is down 41% in the last couple of months. This suggests an effort to improve margins or cut costs, not typically indicative of a growth phase. Employee sentiment towards the business outlook is reported as neutral.

In terms of customer acquisition, Johnson & Johnson's website attracts approximately 2.4 million visitors monthly, with no significant change recently. The company has 98,000 followers on Instagram, up by 5% in the past few months, indicating a growing interest. Conversely, the company’s Twitter following has decreased by 1% to 250,000 followers over the same period, showing a slight loss of interest.

Combining all available data, AltIndex's AI score for Johnson & Johnson stands at 50, which is a hold signal. This score is derived from a blend of fundamental, technical, and alternative data analyses.

Conclusion

Johnson & Johnson presents a mixed picture across various metrics. Fundamental analysis reveals stable revenue growth but significant declines in net income and EBITDA, pointing towards potential financial challenges. Technical indicators show a long-term bullish trend despite short-term price drops, and alternative data suggests a neutral business outlook with shifting interest among followers on social platforms.

Considering the comprehensive analysis, the current recommendation is to adopt a cautious approach. The high P/E ratio and significant declines in profitability are causes for concern, despite some evidenced growth and stability in other areas. Therefore, a "hold" rating is advised, awaiting further financial performance data and market trends.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.