Three Stocks that Could Draw Bullish Attention: Johnson & Johnson
The story of the recent market moves for Johnson & Johnson (J&J) is very similar to that of Procter & Gamble, as are the fundamental drivers behind the growth. The outer difference of the technical character is that the price of J&J has already managed to rewrite its historical highs above $185 per share. J&J's capitalisation growth since January 2021 is about the same at 17.5%. The big difference is that the turnaround of J&J's consumer health care production, which include trademarks like Aveeno, Clean & Clear, Carefree, Dabao, Johnson’s Adult and Johnson’s Baby, Le Petite Marseillais, Listerine, Lubriderm etc, was about $14.6 billion in 2021 while the pharmaceutical branch of the company's sales, including drugs for many different diseases, such as pulmonary hypertension, prostate cancer, attention deficit/hyperactivity disorder (ADHD) and psoriasis, made $52 billion.
The company creates about 0.8% of the world's entire healthcare products, and still has a lot of space to expand. From the geographical point of view, its U.S. related first quarter numbers increased 2.8% while overseas global revenue added 13%. The pharmaceutical branch generated a sales increase of 9.3% while the MedTech segment gave 8.6%. J&J CEOs provided a solid full year’s outlook even after its equity per share of $2.67 showed its best-ever result since the company's foundation in 1886, also mentioning that 2022 should be the 11th consecutive year that the pharmaceuticals business has grown faster than the global market.
J&J still
has an anti-COVID vaccine department, which is currently in a most uncertain stance
because of both the demand's structural changes and the excessive supply of
other shots, like Pfizer and Moderna. Therefore, J&J which previously tried
to forecast its sales at $3.5 billion of its single-dose vaccine, now says it
can no longer predict the particular income size. The J&J vaccine, which
sold at the so-called "not-for-profit" price, provided the company
with $457 million of its revenue in the Q3 2022, much less than its peers did.
Pfizer’s sales forecast for 2022 is $32 billion of its COVID vaccine developed
with BioNTech, while Moderna gave a $21 billion forecast. "The slight miss
was really around the COVID-19 vaccine and quite frankly it met our internal
expectations. There was just a disconnect in how the Street assumed it was
going to play out over the year," Chief Financial Officer Joseph Wolk
remarked during a conference call on April 19. Anyway, this is not a key
component of J&J’s activities in the financial terms.