Why I’m bullish on JNJ

Johnson & Johnson (J&J) is scheduled to release its fourth-quarter 2024 earnings on January 22, 2025, before the market opens.  Several factors suggest a bullish outlook for the company:

Strategic Acquisition in Mental Health Sector

J&J has announced a $14.6 billion acquisition of Intra-Cellular Therapies, aiming to enhance its neuroscience portfolio. This move brings in Caplyta, a treatment for schizophrenia and bipolar depression, potentially expanding J&J’s market presence in mental health therapeutics. 

Strong Oncology Drug Performance

In the previous quarter, J&J reported a 19% increase in oncology drug sales, with Darzalex, a multiple myeloma treatment, achieving over $3 billion in sales—a 20.7% rise that surpassed analyst expectations. This robust performance underscores the company’s strength in the oncology sector. 

Analyst Recommendations and Price Targets

Analysts maintain a “Buy” rating for JNJ stock, with a 12-month average price target of $173.85, indicating an 18.10% potential upside from the current price.  This consensus reflects confidence in J&J’s growth prospects.

Consistent Financial Performance

For the fiscal year 2023, J&J reported earnings of $35.15 billion and revenue of $85.16 billion, marking a 10.57% increase over the previous year. This consistent financial growth demonstrates the company’s resilience and effective business strategies. 

Dividend Reliability

J&J has a history of over 60 consecutive years of dividend increases, highlighting its commitment to shareholder returns and financial stability. 

Given these factors, J&J presents a compelling case for a bullish outlook ahead of its upcoming earnings report.

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