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JNJ · NYSE · STOCK

Johnson & Johnson (JNJ) Stock Analysis

Healthcare Updated August 25, 2026
$273.03
52W $173.33 – $276.47
56/100
$651.25B
31.2
0.23
AI Committee Verdict
Buy
56/100
Conviction: Moderate · 60% agreement · 5 analysts
-18.4%
Moderate

Is JNJ Bullish or Bearish?

Bullish. Innellis AI committee rates Johnson & Johnson (JNJ) Buy with a composite score of 56/100 , based on 5 analysts with 60% agreement. Last updated August 25, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +19.45 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -0.55 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The primary driver is price structure making higher highs and higher lows. The main limiting factor is eps declining -7.8% yoy despite any revenue growth. The committee is constructive but not yet at full conviction.

Bull & Bear Case

Bull Case
  • ROE of 25.7% shows genuine earnings power backing the valuation — Value
  • Dividend yield of 3.1% pays you to wait — Value
  • Price structure making higher highs and higher lows — Technical
  • MACD histogram positive -- bullish momentum — Technical
  • Trend and market structure agree -- coherent bullish picture — Technical
  • Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
  • P/E of 29.9 is moderate-to-rich — Value
  • Price-to-book of 6.1x prices in significant intangible value — Value
  • EPS declining -7.8% YoY despite any revenue growth — Growth
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 25, 2026
Overall Committee Score
56/100
Agreement
60%
Analysts
5
Conviction
Moderate
Sector Rank
Top 65%
of 192 Healthcare peers
Value Analyst neutral
48 / 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 25.7% shows genuine earnings power backing the valuation
− P/E of 29.9 is moderate-to-rich
Growth Analyst bearish
32 / 100 · High confidence
Growth story is weak, decelerating, or inconsistent
− EPS declining -7.8% YoY despite any revenue growth
Technical Analyst bullish
69 / 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
64 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 98 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3063.01)
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Investment Thesis Evolution

Committee score moved marginally from 55.5 to 55.5.

Comparing 2026-08-24 to 2026-08-25 (1 day apart).

Technical Analysis

RSI (14)
64.3
Neutral
MACD Histogram
0.745
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Bollinger %B
0.86
Inside Bands
Price vs Moving Averages
EMA 9
$266.28 Above
EMA 21
$262.30 Above
EMA 50
$255.12 Above
EMA 200
$231.05 Above

Fundamental Analysis

Valuation
46
Growth
62
Profitability
100
Financial Health
60
Cash Flow
70
Valuation
P/E Ratio 31.2×
P/B Ratio 7.76×
PEG Ratio -3.87
Dividend Yield 1.94%
52W High $276.47
52W Low $173.33
Quality & Growth
ROE 3287.1%
ROA 1345.5%
Gross Margin 7045.2%
Operating Margin 2681.1%
Revenue Growth YoY
Debt / Equity 0.58
AI Fundamental Assessment
P/E ratio of 31.2 (rich relative to a 15-40x range); Price-to-book of 7.8x; PEG ratio of -3.9 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 32.9%; Return on assets of 13.5%; Net margin of 21.5%; Gross margin of 70.5%; Current ratio of 1.09 (tight short-term liquidity); Debt-to-equity of 0.58; Free cash flow per share is positive (7.67); Most recent quarter beat estimates by 0.9%; 2 consecutive earnings beats; EPS growth decelerating (+9.8% -> +7.4% QoQ); Average YoY EPS growth of 4.7%; Analyst estimates rising over recent quarters
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