2016-06-24 13:02:58

Johnson & Johnson, #JNJ [NYSE]
Healthcare, drugs production, USA

Financial performance of the company:
Index – DJIA, S&P 500; Beta – 0.63;
Capitalization – 287.98 В; Return on asset – 11.70%;
Income - 15.41 B; Average volume – 9.22 М;
P/E - 21.23; ATR – 1.81

Analytical review:

  • The company ranks the first on capitalization in the sector of “health care” among the issuers traded in the American stock market;
  • In the last month, company’s stock has significantly grown. The price of stock increased by over 3.8%. It is expected that the quotes will continue to rise;
  • According to the last report for Q1 of the fiscal year of 2016, company’s revenue rose by 0.6% up to 17.48 billion USD. Net profit of the company rose by $1.68 per share against the forecast of $1.65 per share;
  • At the beginning of June the company announced about the purchase of Vogue International for 3.3 billion USD. This contract will add to Johnson & Johnson’s portfolio popular brands: OGX shampoos and hair styling product FX;
  • Another factor, which indicates possibilities of the further rise in company’s stocks is P/E Ratio. JNJ P/E Ratio (21.23) is lower than the average P/E in the industry (33.70) and in the sector (35.20);
  • Large investment companies and banks (RBC Capital , Barclays, Piper Jaffray) believe that company’s quotes will go up to 122-125 USD per share;

Summary:

  • Company’s last report was favourable for investors. Despite strong pressure from the USD, company’s results exceeded analysts’ forecast. The company has strong growth potential.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Johnson & Johnson

Key levels:
Support levels: 116.15 USD, 115.40 USD and 114.95 USD.
Resistance levels: 117.20 USD and 117.65 USD.

Medium-term trading, Н1
At the moment the issuer is traded between the local support and resistance levels of 116.15 - 117.20 USD. After breaking out and testing of the resistance level of 117.20 USD, and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 118.50 USD, 120.00 USD and 122.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
Currently, the issuer exceeded the local resistance level of 117.15 USD. If the price maintains the mirrored support level of 117.15 USD, we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 117.90 USD, 118.30 USD and 118.90 USD with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15