Stock of the Day

September 17, 2026

Johnson & Johnson (JNJ)

$267.35
+$0.15 (+0.1%)
Market Cap: $643.92B

About Johnson & Johnson

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.

Johnson & Johnson Bull Case

Here are some ways that investors could benefit from investing in Johnson & Johnson:

  • Johnson & Johnson is currently trading at $266.81, which is below the consensus price target of $272.82, suggesting potential upside as analysts maintain a Moderate Buy rating based on recent performance.
  • The company recently reported that its RYBREVANT (amivantamab) plus chemotherapy regimen achieved a median overall survival of 34.3 months in EGFR exon 20 insertion mutation-positive non-small cell lung cancer, marking the longest reported survival in this patient population and strengthening its oncology portfolio.
  • Johnson & Johnson has raised its 2026 outlook to 6.5% adjusted operational sales growth and 7.3% adjusted earnings-per-share growth, with total revenue expected to exceed $100 billion for the first time, driven by strong performance in the first two quarters of the year.
  • Executives have indicated a clear line of sight to double-digit growth by the end of the decade, supported by a robust pipeline including 12 molecules in Phase III development and recent acquisitions like Halda Therapeutics and Firefly Bio that expand capabilities in oncology and immunology.
  • The stock offers a dividend yield of 2.02%, providing income stability for investors, while the company’s low beta of 0.24 indicates lower volatility compared to the broader market, making it a defensive holding in uncertain economic conditions.

Johnson & Johnson Bear Case

Investors should be bearish about investing in Johnson & Johnson for these reasons:

  • Johnson & Johnson’s experimental depression drug, developed with Contineum Therapeutics, failed to meet the main goal of a mid-stage study, representing a setback in the company’s neuroscience pipeline and potentially delaying expected growth in that therapeutic area.
  • The company faces increasing biosimilar competition for its STELARA franchise, which could erode market share and revenue in the immunology segment, although management claims to be on track to grow through this transition.
  • Recent insider activity shows a trend of selling, with multiple executives including Timothy Schmid, Jennifer L Taubert, and Elizabeth Forminard selling significant blocks of shares in the second quarter of 2026, which may signal reduced confidence in near-term stock appreciation.
  • Johnson & Johnson is in talks to sell its DePuy Synthes orthopedics unit to Apollo for $20 billion, which could lead to a loss of a major revenue stream and strategic focus, potentially impacting the company’s MedTech segment performance and long-term growth trajectory.
  • The company’s valuation, with a P/E ratio of 30.92, is relatively high compared to historical averages, which may limit upside potential if growth expectations are not met, particularly given the challenges in the neuroscience and immunology segments.
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