Analysts Detailing with Profitability Ratio Analysis: Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson (NYSE:JNJ) under comprehensive financial analysis presented as an active mover. Shares inched up 0.29% to trade at $127.05 in recent trading session. The firm has floated short ration of 0.62%, hold to candle to sentiment indicator of Short Ratio, which was 2.45.

Limelight under Ratio Analysis

Johnson & Johnson (NYSE:JNJ) has noticeable price to earnings growth ratio of 3.62, which find it more attractive on the other stock that has lower PEG and vice versa. The firm price to earnings ratio calculated as 21.40. The co stands at price to sale ratio of 4.80 that signifies the value placed on each dollar of a firm’s sales or incomes; it is most relevant ratio to compare companies in similar sector. It has price to book ratio of 4.90, which gauges the market price of a share over its book value.

Analysts Rating

Finally, analysts shed their light over the JNJ price targets; maintaining price high target of 138 while at average the price target was 124.79 in contrast with the current price of 127.05. The price targets are usually acts as the boosters or blasters in the performance of stock. A higher price target would definitely provide confidence to investors during the trading action, consideration given by Wall Street Journal.

So does the rankings given by analysts; let us highlight rankings table and we had 8 analysts recommending BUY ratings for current month and for previous month 7 stands on similar situation; while 14 for the current month as compared to 14 analysts recommending for HOLD from the pool for previous month. While 2 stands at overweight and 1 analyst gave Underweight and 0 out of pool consider it as Sell for current month. For the overall, consensus ratings were for Overweight.

Profitability Analysis

Johnson & Johnson (NYSE:JNJ) need to consider for profitability analysis, the firm has profit margin of positive 23.00% to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin calculated as 69.90% and 27.50% respectively. JNJ has returns on investment of 17.00%. The returns on assets were 11.90% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 22.90%, which is measuring profitability by disclosing how much profit generates by JNJ with the shareholders’ money.

The firm attains analyst recommendation of 2.50 on scale of 1-5. The co has price volatility of 1.01% for a week and 1.11% for a month. Narrow down focus to firm performance, its weekly performance was 2.60% and monthly performance was 10.98%. The stock price of JNJ is moving up from its 20 days moving average with 4.56% and isolated positively from 50 days moving average with 8.82%.

Johnson & Johnson (NYSE:JNJ) current ratio calculated as 2.50, this value is acceptable if it lies in 1.3% to 3%. But it varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 2.20, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.39, sometimes it remain same with long term debt to equity ratio.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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