Return of the King JNJ?
Johnson & Johnson $Johnson & Johnson(JNJ)$ is set to report Q1 2022 earnings before open on Tue 19 Apr. Most analysts are forecasting an earnings beat for this diversified healthcare giant, due to continued strong growth overall, but in particular pharmaceutical segment (which grew by 16.5% in Q4 2021).
Dividend King
Many would also know that JNJ is a "dividend king", with impressive record 59 years of dividend increase. Its dividend yield is currently 2.4% with 1 and 5-year-dividend growth of around 5% consistently (see table below). It could be a good defensive stock to rotate to from Tech, in current rising rates environment.
JNJ Dividend Key Metrics Source: Sure Dividend
Return to All-time-high?
We should also look at its Daily chart to identify entry and exit prices (see chart below). We noticed that for the most recent 3 quarters which are earnings beat, stock price has initially "pop" after announcement by between 3.04 to 3.86% (first 3 blue rectangles). Currently, JNJ price has retraced from recent all-time-high (ATH) of $184.2 to around $178.67 and sitting just above its 20 MA line (last blue rectangle with ?), which has provided support and price bounced in the past.
If we estimate the current price increase to recent ATH, ($178.67 to $184.2) it is an increase of 3.09%, which matches quite closely with the % range of the 3 most recent earnings price "pop".
While we cannot expect price to behave exactly like previously, we might see similar pattern if there is another earnings beat. So I would be looking to go long on JNJ at price around 20 MA support, entry $178 and first profit target $185, with stop-loss if I am wrong, about $2-3 below entry price.
Daily Chart of JNJ, 3 most recent price "pop" after earnings: 3.04-3.86%. Possible target in next earning
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But still need to re-access the decision to buy since there will be a 30% withholding tax charged
$Johnson & Johnson(JNJ)$ Q1 2022 EPS beat but revenue missed a bit, weaker 2022 guidance. Closed at $183.08 (+3.05%) closed enough to estimated 3.09%. It reached new ATH intraday $185.94. Congrats if you have also got in [胜利]