Johnson & Johnson (JNJ) has achieved a ‘Golden Cross’, a technical indicator suggesting a shift from a bearish to a bullish trend. The stock’s 50-day moving average has crossed above the 200-day moving average, indicating strong upward momentum. This bullish signal is further supported by strong short-term strength and positive fundamental catalysts like the FDA submission for a new muscle weakness drug.
Despite its continued underperformance in the healthcare sector, JNJ remains a fundamentally strong company with robust profitability and a well-diversified business. Its focus on Innovative Medicine and MedTech segments, along with recent acquisitions in cardiology, provides growth opportunities. While challenges related to Stelara biosimilars and talc-related liabilities persist, JNJ’s strong balance sheet and commitment to M&A provide a solid foundation. Investors with a value and income focus may find JNJ’s current levels attractive, offering a potentially favorable risk/reward entry point.
