JNJ stock verdict - Avoid
JNJ
Johnson & Johnson
AVOIDHealthcare
$260.35
Fundamentals below bar
$260.35
Heavy$146.38Buy$195.18Fair$243.97Exit$292.76
FUNDAMENTAL43
TECHNICAL85
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Uptrend · EMA20 258.31 · EMA50 252.05 · EMA200 229.16 · RSI 55.2 · MACD below signal
PROS
- Strong return on equity of 25.3% (TTM)
- Balance sheet holds net cash (cash exceeds total debt)
- Converts 23% of revenue into free cash flow
- High gross margin of 69% (3-yr avg)
- Price is in an uptrend — above key moving averages with positive momentum
CONS
- Expensive on trailing earnings (P/E 30.2×)
- Rich for its growth rate (PEG 3.2)
- TTM EPS fell 7.7% year-over-year
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 92% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-08-16 · price live, fundamentals from latest filings
Congress Trading — last 90 days
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FAQ
Why is JNJ rated Avoid?
JNJ (Johnson & Johnson) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Fundamentals below bar. Strong return on equity of 25.3% (TTM) and Balance sheet holds net cash (cash exceeds total debt)
Is JNJ overvalued right now?
JNJ is trading at $260.35 versus an estimated fair value of $243.97. That puts the stock in avoid territory on this framework. Expensive on trailing earnings (P/E 30.2×) and Rich for its growth rate (PEG 3.2)
What should I watch before acting on JNJ?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Expensive on trailing earnings (P/E 30.2×) and Rich for its growth rate (PEG 3.2)