Analytical Review of the Stocks of Johnson & Johnson
Johnson & Johnson, #JNJ [NYSE]
Healthcare, production of drugs, USA
Financial performance of the company:
Index – DJIA, S&P 500; Beta – 0.63;
Capitalization – 287.98 В; Return on asset – 11.70%;
Income - 15.41 B; Average volume – 9.22 М;
P/E - 18.99; ATR – 1.81.
Analytical review:
- The company ranks the first on capitalization in the sector of “health care” among the issuers traded in the American stock market;
- Since the beginning of March company’s shares has grown by over 3%. It is expected that the rise in quotes will continue;
- According to the last report for Q4 of the fiscal year of 2015, company’s revenue fell by 2.4% to 17.81 billion USD. However, net profit of the company Johnson&Johnson rose by 27.2% to 3.22 billion USD. EPS increase by 7% up to 0.75 USD;
- During this fiscal year the company has increased restructuring budget by 2.4 billion USD. Within 2 years the company plans to reduce staff in the sector of medical equipment by 4-6%;
- The company has the best profitability of capital and investments against main competitors. The return on investments amounts to 14.56%. Return on equity is 21%. The average indicators in industry are 13.28% and 14.07% respectively;
- At the beginning of April the company announced a cheaper version of the drug Remicade which treat inflammatory and which was approved by FDA Commission;
- Over 65% of the company’s shares belong to institutional funds. The most part of the shares belong to Vanguard Group (6.36%) and State Street Corporation (5.38%).
Summary:
- Company’s report for Q4 of the fiscal year 2015 showed that management of the company is on the right track. Despite pressure from the strong USD company’s net profit has grown. The company has strong growth potential. New drugs developed by the company have been approved by FDA, which increased investors’ confidence to the company. The most part of the company’s shares belong to institutional funds.
- It is likely that in the near future company’s quotes will go up.
Trading tips for CFD of Johnson & Johnson
Medium-term trading: the moment the issuer is traded between the local support and resistance levels of 108.00 - 109.50 USD. After breaking out and testing of the level of 109.50 USD in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 111.00 USD, 112.50 USD and 114.00 USD with the use of trailing stop.
Short-term trading: on the chart with the timeframe 15M the issuer is traded between the local support and resistance levels of 108.70 - 109.40 USD. We recommend to enter the market after breakdown and testing of these levels. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.
The material has been provided by LiteForex - Finance Services Company - www.liteforex.com
