Johnson & Johnson: Strong Performance Amid Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy JNJ?
Source: Fool
- Outstanding Stock Performance: Johnson & Johnson's shares have surged 53% over the past year, outperforming most tech stocks in a volatile market, highlighting its stability and attractiveness in the healthcare sector.
- Drug Price Negotiation Challenges: Despite strong performance, Johnson & Johnson faces government-led drug price negotiations that could lead to decreased sales for some therapies, impacting future revenue.
- Patent Cliff Risks: The loss of patent exclusivity for Stelara exposes Johnson & Johnson to competition from biosimilars, potentially pressuring its market share, particularly in the immunology sector.
- Legal Troubles: Johnson & Johnson is still dealing with thousands of lawsuits claiming its talc-based products caused cancer, which could affect the company's reputation and financial performance.
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 244.550
Low
190.00
Averages
218.50
High
240.00
Current: 244.550
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Johnson & Johnson Ordered to Pay $250,000 Over Talc Powder Case
- Jury Verdict: A Pennsylvania jury found Johnson & Johnson liable for $250,000 in damages related to Gayle Emerson's ovarian cancer, highlighting ongoing legal challenges for the company despite the award falling short of expectations.
- Escalating Legal Battles: The company faces significant hurdles in federal court, particularly in New Jersey, where a judge recommended allowing expert testimony linking talc use to ovarian cancer, which could influence future trial outcomes.
- Case Background: Emerson used the talc powder from 1969 to 2017 and filed a lawsuit in 2019, passing away six months later from metastatic ovarian cancer, indicating the complexity and longevity of Johnson & Johnson's legal battles over talc products.
- Market Impact: Johnson & Johnson ceased U.S. sales of talc-based baby powder in 2020, shifting to cornstarch, yet continues to face over 67,000 lawsuits, reflecting significant pressure on the company's legal standing and market reputation.
See More
Johnson & Johnson Stock Gains Attention with Price Target Increases
- Stock Price Surge: Johnson & Johnson (NYSE:JNJ) has seen its shares rise by 53% over the past year and 15% year-to-date, indicating strong market performance and reflecting investor confidence in its future growth prospects.
- Analyst Optimism: RBC Capital raised its price target for Johnson & Johnson from $240 to $255 while maintaining an Outperform rating, highlighting the company's strong financials to navigate legal challenges effectively.
- Revenue Growth Expectations: The firm anticipates a 6% increase in full-year revenue to $94.2 billion in 2025, with projections reaching $100.5 billion in 2026, further bolstering market confidence in its stock.
- Investor Attention: Jim Cramer praised Johnson & Johnson as “amazing,” which has heightened market interest in the company, although he believes some AI stocks may offer greater return potential.
See More
Johnson & Johnson Found Liable for Ovarian Cancer Case
- Compensation Awarded: A Philadelphia jury found Johnson & Johnson liable for causing ovarian cancer through its talc powder, awarding $50,000 in compensatory damages and $200,000 in punitive damages, highlighting the court's emphasis on consumer health safety.
- Long-term Usage: The plaintiff, Gayle Emerson, used J&J's talc powder for over 45 years before being diagnosed with ovarian cancer in 2015, indicating a potential link between prolonged use and health risks, which may undermine consumer confidence in the product.
- Health Risk Warning: The verdict may spark further discussions regarding the safety of talc powder, particularly in women's health, potentially leading to more legal challenges and public scrutiny for Johnson & Johnson.
- Reputation Damage: The company's loss in this case could have long-lasting effects on its brand image, especially as consumer trust in health products becomes increasingly critical, potentially impacting future sales and market share.
See More
Jury Finds Johnson & Johnson Liable for Cancer Death
- Jury Verdict: A jury in the Philadelphia Court found Johnson & Johnson liable for the death of Gayle Emerson, awarding $250,000, which includes $50,000 in compensatory damages and $200,000 in punitive damages, signaling a strong warning regarding the company's product liability.
- Product Liability Claims: The jury determined that J&J's talc products were associated with product liability, failure to warn about dangers, and negligence, highlighting the company's choice to conceal knowledge of potential asbestos contamination, which has harmed consumer health.
- Future Litigation Outlook: This trial marks the first of several scheduled for 2026, which could significantly impact J&J's legal responsibilities, especially with over 70,000 lawsuits consolidated in multidistrict litigation in New Jersey awaiting trial.
- Financial Impact: Johnson & Johnson reported revenues of $94.2 billion for 2025, with expectations to exceed $100 billion by the end of 2026, but faced over $2 billion in losses in Q4 2025 due to talc-related lawsuits, potentially affecting future financial performance.
See More
Johnson & Johnson (JNJ.US) Executive Plans to Sell $10.13 Million in Common Stock via Form 144
- Stock Sale Announcement: Officer Swanson James D. intends to sell 41,559 shares of its common stock on February 13.
- Market Value: The total market value of the shares being sold is approximately $10.13 million.
See More
PENNSYLVANIA JURY RULES JOHNSON & JOHNSON RESPONSIBLE FOR WOMAN'S OVARIAN CANCER, SAYS ATTORNEY FOR NATIONAL TALC PLAINTIFFS
Jury Verdict: A Pennsylvania jury has found Johnson & Johnson liable for a woman's ovarian cancer, linking it to the company's talc products.
Legal Implications: This ruling may have significant implications for ongoing litigation against Johnson & Johnson regarding the safety of their talc-based products.
See More
Johnson & Johnson Ordered to Pay $250,000 Over Talc Powder Case
- Jury Verdict: A Pennsylvania jury found Johnson & Johnson liable for $250,000 in damages related to Gayle Emerson's ovarian cancer, highlighting ongoing legal challenges for the company despite the award falling short of expectations.
- Escalating Legal Battles: The company faces significant hurdles in federal court, particularly in New Jersey, where a judge recommended allowing expert testimony linking talc use to ovarian cancer, which could influence future trial outcomes.
- Case Background: Emerson used the talc powder from 1969 to 2017 and filed a lawsuit in 2019, passing away six months later from metastatic ovarian cancer, indicating the complexity and longevity of Johnson & Johnson's legal battles over talc products.
- Market Impact: Johnson & Johnson ceased U.S. sales of talc-based baby powder in 2020, shifting to cornstarch, yet continues to face over 67,000 lawsuits, reflecting significant pressure on the company's legal standing and market reputation.
See More
Johnson & Johnson Stock Gains Attention with Price Target Increases
- Stock Price Surge: Johnson & Johnson (NYSE:JNJ) has seen its shares rise by 53% over the past year and 15% year-to-date, indicating strong market performance and reflecting investor confidence in its future growth prospects.
- Analyst Optimism: RBC Capital raised its price target for Johnson & Johnson from $240 to $255 while maintaining an Outperform rating, highlighting the company's strong financials to navigate legal challenges effectively.
- Revenue Growth Expectations: The firm anticipates a 6% increase in full-year revenue to $94.2 billion in 2025, with projections reaching $100.5 billion in 2026, further bolstering market confidence in its stock.
- Investor Attention: Jim Cramer praised Johnson & Johnson as “amazing,” which has heightened market interest in the company, although he believes some AI stocks may offer greater return potential.
See More
Johnson & Johnson Found Liable for Ovarian Cancer Case
- Compensation Awarded: A Philadelphia jury found Johnson & Johnson liable for causing ovarian cancer through its talc powder, awarding $50,000 in compensatory damages and $200,000 in punitive damages, highlighting the court's emphasis on consumer health safety.
- Long-term Usage: The plaintiff, Gayle Emerson, used J&J's talc powder for over 45 years before being diagnosed with ovarian cancer in 2015, indicating a potential link between prolonged use and health risks, which may undermine consumer confidence in the product.
- Health Risk Warning: The verdict may spark further discussions regarding the safety of talc powder, particularly in women's health, potentially leading to more legal challenges and public scrutiny for Johnson & Johnson.
- Reputation Damage: The company's loss in this case could have long-lasting effects on its brand image, especially as consumer trust in health products becomes increasingly critical, potentially impacting future sales and market share.
See More
Jury Finds Johnson & Johnson Liable for Cancer Death
- Jury Verdict: A jury in the Philadelphia Court found Johnson & Johnson liable for the death of Gayle Emerson, awarding $250,000, which includes $50,000 in compensatory damages and $200,000 in punitive damages, signaling a strong warning regarding the company's product liability.
- Product Liability Claims: The jury determined that J&J's talc products were associated with product liability, failure to warn about dangers, and negligence, highlighting the company's choice to conceal knowledge of potential asbestos contamination, which has harmed consumer health.
- Future Litigation Outlook: This trial marks the first of several scheduled for 2026, which could significantly impact J&J's legal responsibilities, especially with over 70,000 lawsuits consolidated in multidistrict litigation in New Jersey awaiting trial.
- Financial Impact: Johnson & Johnson reported revenues of $94.2 billion for 2025, with expectations to exceed $100 billion by the end of 2026, but faced over $2 billion in losses in Q4 2025 due to talc-related lawsuits, potentially affecting future financial performance.
See More
Johnson & Johnson (JNJ.US) Executive Plans to Sell $10.13 Million in Common Stock via Form 144
- Stock Sale Announcement: Officer Swanson James D. intends to sell 41,559 shares of its common stock on February 13.
- Market Value: The total market value of the shares being sold is approximately $10.13 million.
See More
PENNSYLVANIA JURY RULES JOHNSON & JOHNSON RESPONSIBLE FOR WOMAN'S OVARIAN CANCER, SAYS ATTORNEY FOR NATIONAL TALC PLAINTIFFS
Jury Verdict: A Pennsylvania jury has found Johnson & Johnson liable for a woman's ovarian cancer, linking it to the company's talc products.
Legal Implications: This ruling may have significant implications for ongoing litigation against Johnson & Johnson regarding the safety of their talc-based products.
See More
