JNJ

Johnson & Johnson

Basic Materials · Pharmaceutical Preparations
$226.49-0.31% today
AI Take · AlgoThesis

Johnson & Johnson trades at a notably elevated 25.99 P/E despite an RSI of 39.2, suggesting the market prices in significant growth expectations even as momentum indicators reflect near-oversold conditions. At $574.4B market cap, this pharmaceutical giant commands premium valuation typical of defensive healthcare plays, yet the subdued RSI hints at recent selling pressure that hasn't fully reversed. The disconnect between valuation multiples and momentum—rich multiple paired with weak technicals—creates an interesting tension: either the market is discounting meaningful future catalysts, or there's compressed upside potential if sentiment doesn't materially improve. The stock's positioning below its 52-week high leaves room for recovery, but the elevated earnings multiple leaves limited margin for disappointment.

Snapshot

Market cap
$574.4B
P/E
26.0
Forward P/E
19.0
EPS (TTM)
$8.65
Dividend yield
2.33%
Net margin
21.8%
ROE
33.8%
RSI (14)
39
Beta
0.03
Short % of float
Days to cover
52w high
No

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