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Valued at a market cap of $546.9 billion, Johnson & Johnson (JNJ) is a global healthcare leader dedicated to advancing medical innovation and improving patient outcomes through its diverse portfolio of high-growth medicines and medical technologies. The New Brunswick, New Jersey-based company focuses on developing transformative therapies for complex diseases, including oncology, immunology, and neuroscience.
This healthcare company has considerably outpaced the broader market over the past 52 weeks. Shares of JNJ have rallied 47.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 29%. Moreover, on a YTD basis, the stock is up 9.8%, compared to SPX’s 5.6% rise.
Looking specifically at the healthcare space, JNJ has also outpaced the State Street Health Care Select Sector SPDR ETF (XLV), which gained 6.2% over the past 52 weeks and declined 6.2% on a YTD basis.
On Apr. 14, shares of JNJ closed up marginally after its better-than-expected Q1 earnings release. The company’s sales grew 9.9% year-over-year to $24.1 billion, surpassing consensus estimates by 2.6%. Meanwhile, its adjusted EPS declined 2.5% from the year-ago quarter to $2.70, but topped analyst expectations of $2.67. Additionally, JNJ raised its fiscal 2026 guidance, now projecting adjusted EPS to be between $11.45 and $11.65, with revenue in the range of $100.3 billion to $101.3 billion.
For the current fiscal year, ending in December, analysts expect JNJ’s EPS to grow 7.2% year over year to $11.57. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 12 “Strong Buy,” three “Moderate Buy,” and 10 “Hold” ratings.
The configuration has remained consistent over the past three months.
On Apr. 23, Josh Jennings from TD Cowen maintained a “Buy” rating on JNJ, with a price target of $250, indicating a 10.3% potential upside from the current levels.
The mean price target of $259.92 indicates a 14.7% potential upside from its current levels, while its Street-high price target of $285 suggests a 25.7% premium.
