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New Brunswick, New Jersey-based Johnson & Johnson (JNJ) primarily focuses on drug discovery and manufacturing but has a diversified business model. With a market cap of $402.8 billion, Johnson & Johnson operates through pharmaceuticals, medical devices, and consumer products divisions.
The healthcare giant has notably lagged behind the broader market over the past year but outperformed it in 2025. JNJ stock has gained 13.9% on a YTD basis and 2.1% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 7.8% gains in 2025 and 16.6% returns over the past year.
Narrowing the focus, JNJ has notably outperformed the sector-focused Health Care Select Sector SPDR Fund’s (XLV) 5.2% decline in 2025 and 13.2% drop over the past 52 weeks.
Johnson & Johnson’s stock prices surged 6.2% in a single trading session following the release of its impressive Q2 results on Jul. 16. Driven by the strength and momentum of its strong product portfolio, the company’s total revenues increased 5.8% year-over-year to $23.7 billion, beating the Street expectations by a notable 3.8%. Meanwhile, its adjusted EPS dipped 1.8% year-over-year to $2.77, but surpassed the consensus estimates by 4.1%, boosting investor confidence.
For the full fiscal 2025, ending in December, analysts expect an 8.8% year-over-year growth in adjusted EPS to $10.86. Furthermore, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
The stock maintains a consensus “Moderate Buy” rating overall. Of the 24 analysts covering the stock, opinions include 10 “Strong Buys,” two “Moderate Buys,” and 12 “Holds.
This configuration is slightly more bullish than a month ago, when nine analysts gave “Strong Buy” recommendations.
On Jul. 17, Guggenheim analyst Vamil Divan maintained a “Neutral” rating on JNJ and raised the price target from $164 to $167.
As of writing, JNJ’s mean price target of $175.18 represents a modest 6.3% upside potential. Meanwhile, the Street-high target of $190 suggests a notable 15.3% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
