Johnson & Johnson (JNJ) Stock Analysis
Verdict: HOLD
MedTech expansion and 3.1% dividend yield anchor JNJ's stability, but 39.3x P/E valuation limits short-term upside beyond $280.
Investment score: 64/100
Analysis as of
Is Johnson & Johnson stock worth reviewing? AI model thesis
The AI model assigns Johnson & Johnson an investment score of 64/100, recommending a HOLD. While MedTech innovations like the OTTAVA robotic surgery platform and strong balance sheet health ($19.70B FCF) protect value, valuation at 39.34x P/E caps near-term re-rating potential.
7-factor investment score
- Valuation: 52/100 (weight 20%)
- Financial Health: 82/100 (weight 15%)
- Technical Momentum: 62/100 (weight 15%)
- Earnings Quality: 70/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 68/100 (weight 15%)
Johnson & Johnson opportunities and risks
What speaks for JNJ
- FDA De Novo clearance for the OTTAVA Robotic Surgical System unlocks entry into soft-tissue robotics.
What speaks against JNJ
- Patent expirations and biosimilar competition on core immunology blockbusters.
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| JNJ | 39.3x | 6.3x | 21.2x | 68.8% | 16.2% | 3.0% |
| LLY | 41.8x | 14.8x | 28.2x | 83.4% | 33.5% | 1.7% |
| MRK | 119.4x | 5.6x | 30.0x | 75.4% | 4.8% | 4.3% |
| PFE | 39.3x | 2.7x | 17.2x | 71.3% | 6.8% | 6.5% |
| BMY | 13.6x | 2.6x | 9.5x | 70.2% | 18.9% | 9.1% |
| RPRX | 25.0x | 10.6x | 20.4x | 89.4% | 32.1% | 11.1% |
| Peer median | 39.3x | 5.6x | 20.4x | 75.4% | 18.9% | 6.5% |
Frequently asked questions about Johnson & Johnson (JNJ)
Is JNJ stock a good investment?
The cached TradeMates AI model rates Johnson & Johnson as HOLD with an investment score of 64/100. The AI model assigns Johnson & Johnson an investment score of 64/100, recommending a HOLD. While MedTech innovations like the OTTAVA robotic surgery platform and strong balance sheet health ($19.70B FCF) protect value, valuation at 39.34x P/E caps near-term re-rating potential. This is algorithmic model output, not personal investment advice.
Is JNJ stock a buy?
The TradeMates model verdict for JNJ is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.