Johnson & Johnson (JNJ) Stock Analysis
Latest ClaritX AI analysis ·
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 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.
| Metric | Value |
|---|---|
| Price | $254.78 |
| Market cap | $614.0B |
| Sector | Healthcare |
| Industry | Drug Manufacturers - General |
| ClaritX AI score | 81/100 |
| Price/Book | 7.32 |
| Dividend yield | 2.07% |
| Beta | 0.23 |
AI verdict
Johnson & Johnson (JNJ) continues to assert itself as a formidable, defensively impenetrable cornerstone for global equity portfolios, effortlessly blending elite dividend reliability with profound operational efficiency. The company’s fundamentals are beyond reproach, boasting a 67.91% gross margin, a massive $7.67 in free cash flow per share, and an exceptionally safe dividend payout ratio of 59.99%. JNJ's interest coverage ratio of 25.94x insulates it from macroeconomic turbulence, and institutional confidence remains strong with an average short-term analyst price target of $296, representing substantial upside ahead of the October 13 earnings report. Applying strict momentum awareness, JNJ is currently trading at $254.78, positioning it precisely 9.35% below its 52-week high of $281.07. Supported by a microscopically low beta of 0.235, this 9.35% drawdown represents routine sector rotation and algorithmic digestion, completely distinct from the structural collapse seen in high-beta equities. Crucially, the stock remains safely above its 200-day moving average ($242.15), keeping the long-term uptrend robustly intact. With the RSI stabilizing at an oversold 27.39, the current valuation provides sophisticated investors an unparalleled, low-risk entry point to secure a premier Dividend King at a discount. Rating 81/100
What this score has been worth
ClaritX scores JNJ 81 out of 100 (snapshot 2026-10-15).
Every ClaritX analysis is scored first and judged only on what the stock did afterwards. Across the 192 analyses that scored in the 80-84 band, the average forward return was -1.0% with a 46% win rate, -5.6pp against the S&P 500. That is a measured tendency across many names, not a forecast for JNJ — roughly 54% of stocks in this band still lost money.
The full band-by-band table, including the bands that lost, is on the AI Rank Report; the live strategy arms behind it are on the AI Track Record, losses published.