Core Viewpoint - Johnson & Johnson (J&J) plans to separate its Orthopaedics business into a standalone company named DePuy Synthes, expected to be completed within 18 to 24 months, to focus on higher-growth markets in MedTech [1][9]. MedTech Developments - J&J's MedTech sector is emphasizing its commitment to complex surgeries, with a new robotic surgical system, OTTAVA, designed to support multi-specialty soft-tissue surgery [2][4]. - The OTTAVA system integrates surgical instrumentation with future connectivity to the Polyphonic digital ecosystem, and has received FDA approval for a second clinical trial in inguinal hernia procedures [3][5]. - The company aims for OTTAVA to impact growth starting in 2028, allowing time for FDA approval and market adoption [19]. Financial Performance - J&J generated $14 billion in free cash flow through the first nine months of 2025, with forecasts suggesting an increase to $18.54 billion for the year [15]. - The company has a dividend payout ratio of 68%, with expectations to increase its annual dividend from $5.16 per share in 2025 to $6.32 per share in 2029 [15]. - CFO Joe Wolk indicated that the separation of Orthopaedics could improve MedTech's top-line revenue growth and operating margin by at least 75 basis points [7]. Strategic Focus - The separation of the Orthopaedics business allows J&J to concentrate resources on three core focus areas: cardiovascular, surgery, and vision [8]. - The company is committed to continuous portfolio optimization and value creation, with the separation seen as a step towards faster growth in MedTech [9][22]. - J&J's management has stated that large acquisitions are not necessary to achieve growth targets, focusing instead on smaller deals that leverage scientific expertise [20][21]. Product Launches and Growth - J&J's pharmaceutical business continues to show strong growth, with new product launches expected to position the company well for 2026 and beyond [23]. - The company has launched new products like INLEXZO for bladder cancer and CAPLYTA for major depressive disorder, both with peak sales estimates exceeding $5 billion annually [15]. - The cardiovascular portfolio showed strong performance in Q3, with operational sales growth of over 20% from the acquired Shockwave technology [16][14].

Core Viewpoint - Johnson & Johnson (JNJ) is positioned as a leader in the healthcare sector, with strong growth driven by its pharmaceutical and MedTech divisions, despite facing some market challenges [1][2][6] Financial Performance - Analysts project JNJ's earnings per share (EPS) for the upcoming quarterly earnings to be $2.49, with revenue expected to reach approximately $24.16 billion [1][6] - The Zacks Consensus Estimate forecasts fourth-quarter sales at $24.14 billion and EPS at $2.50, indicating alignment with Wall Street projections [2] - JNJ aims for over 5% revenue growth in 2026, although earnings estimates for 2025 and 2026 have seen slight declines [3] Market Position - JNJ maintains a strong financial position, reflected in a P/E ratio of 21.14, which indicates investor confidence in its earnings potential [4][6] - The company's price-to-sales ratio stands at 5.72, and the enterprise value to sales ratio is 6.02, highlighting its market valuation [4] - An enterprise value to operating cash flow ratio of 22.90 underscores JNJ's cash flow efficiency [4] Debt and Investment Metrics - JNJ's debt-to-equity ratio is 0.58, demonstrating a balanced approach to financing [5] - A current ratio of 1.07 indicates the company's capability to meet short-term obligations [5] - With an earnings yield of 4.73%, JNJ offers a solid return on investment, reinforcing its status as a reliable player in the healthcare industry [5]

分组1 - Johnson & Johnson is set to release its fourth-quarter earnings on January 21, with expected earnings of $2.47 per share, an increase from $2.04 per share in the same period last year [1] - The consensus estimate for the company's quarterly revenue is $24.16 billion, up from $22.52 billion reported last year [1] - The company recently shared topline results from the Phase 3 MajesTEC-9 study of Tecvayli for multiple myeloma, which may attract investor interest [2] 分组2 - Johnson & Johnson has an annual dividend yield of 2.38%, translating to a quarterly dividend of $1.30 per share, or $5.20 annually [2] - To generate a monthly income of $500 from dividends, an investor would need to own approximately 1,154 shares, equating to a total investment of about $252,334 [3][4] - For a more conservative monthly income goal of $100, an investor would need 231 shares, requiring an investment of around $50,510 [4] 分组3 - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which can fluctuate based on stock price changes [5] - If the stock price increases, the dividend yield decreases, and if the stock price decreases, the dividend yield increases [5] - Johnson & Johnson's shares fell by 0.4% to close at $218.66 recently [6]

分组1 - Johnson & Johnson is set to release its fourth-quarter earnings on January 21, with expected earnings of $2.47 per share, an increase from $2.04 per share in the same period last year [1] - The consensus estimate for Johnson & Johnson's quarterly revenue is $24.16 billion, up from $22.52 billion reported last year [1] - The company recently shared topline results from the Phase 3 MajesTEC-9 study of Tecvayli for multiple myeloma, indicating ongoing research and development efforts [2] 分组2 - Johnson & Johnson has an annual dividend yield of 2.38%, translating to a quarterly dividend of $1.30 per share, or $5.20 annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 1,154 shares, equating to a total investment of about $252,334 [3][4] - For a more conservative monthly income goal of $100, an investor would need 231 shares, requiring an investment of around $50,510 [4] 分组3 - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which can fluctuate and affect the yield [5] - Changes in the stock price can lead to variations in the dividend yield; for instance, if the stock price rises, the yield decreases, and vice versa [5] - Johnson & Johnson's shares fell by 0.4% to close at $218.66 recently, reflecting market activity [6]

Market Overview - US stock index futures are all down, with Dow futures down 1.24%, S&P 500 futures down 1.34%, and Nasdaq futures down 1.65% [1] - European indices also show declines, with Germany's DAX down 1.21%, UK's FTSE 100 down 0.86%, France's CAC40 down 0.89%, and the Euro Stoxx 50 down 1.01% [2][3] Oil Prices - WTI crude oil increased by 0.78% to $59.80 per barrel, while Brent crude oil rose by 0.67% to $64.37 per barrel [3][4] Technology Sector Insights - Wedbush analysts suggest that the Greenland tariff dispute may pressure the market at the open but could present a buying opportunity for technology stocks [5] - Analysts expect significant earnings growth for the S&P 500, with technology sector earnings projected to grow by 25.4% in 2025 and 31.1% in 2026, outpacing the overall index [8] Company-Specific News - Netflix is set to release its Q4 earnings report, with expectations of $0.55 earnings per share and $12 billion in revenue, although future revenue growth may slow [11] - Nvidia faces supply chain disruptions due to a halt in the export of its H200 AI chips to China, affecting over 1 million orders [13] - BHP reported a slight increase in iron ore production and raised its copper production guidance for the fiscal year [13] Economic Events - Upcoming earnings reports include Netflix and Interactive Brokers on Wednesday morning, and Johnson & Johnson and Halliburton before the market opens [15]

Core Viewpoint - The earnings season is intensifying with major companies like Netflix, Intel, Johnson & Johnson, Freeport McMoran, and 3M Company set to report, indicating a pivotal week for stock movements [1] Earnings Reports and Implied Volatility - Implied volatility tends to be high before earnings reports due to market uncertainty, leading to increased demand for options and higher option prices [2] - After earnings announcements, implied volatility typically decreases to normal levels [3] Expected Stock Movements - The expected price range for stocks can be estimated by summing the prices of at-the-money put and call options, using the first expiry date after the earnings date [3] - Specific expected price movements for companies reporting this week include: - USB: 3.8% - FAST: 7.3% - MMM: 5.6% - NFLX: 7.7% - KMI: 2.8% - JNJ: 3.2% - SCHW: 4.8% - TFC: 6.2% - INTC: 8.7% - FCX: 5.3% - COF: 4.8% - PG: 3.8% - GE: 5.5% - SLB: 4.1% [4][5] Trading Strategies - Traders can utilize expected moves to structure their trades, with bearish traders potentially selling bear call spreads outside the expected range, while bullish traders may consider selling bull put spreads or naked puts [5] - Neutral traders might opt for iron condors, ensuring that short strikes remain outside the expected range [5] - It is advisable for traders to employ risk-defined strategies and maintain small position sizes to mitigate potential losses [6] High Implied Volatility Stocks - A stock screener can be used to identify stocks with high implied volatility, with filters set for total call volume greater than 5,000, market cap over 40 billion, and IV rank above 50% [7]

We recently published 15 Fresh Stocks Jim Cramer Discussed.  Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer discussed. Jim Cramer has turned quite optimistic on pharmaceutical firm Johnson & Johnson (NYSE:JNJ) lately. Most of the CNBC TV host’s optimism stems from the firm’s cancer drug portfolio and its decision to spin off its orthopaedic business. The shares have gained 47.8% over the past year and by 5.5% year-to-date. Early in January, Bernstein raised Johnson & Johnson (NYSE:JNJ)’s sha ...

Core Insights - Johnson & Johnson is facing a significant transition as it prepares to report its fourth-quarter results, with a focus on replacing revenue lost from its former leading immunology product, Stelara [1] Group 1: Revenue and Sales Performance - Stelara, which generated nearly $10 billion annually at its peak, is experiencing a decline due to the introduction of biosimilars in the U.S. market, leading to a reported 42% year-over-year sales decline in the third quarter [2] - The company is optimistic about newer therapies, including Oncology drug Darzalex, immunology medicine Tremfya, and depression treatment Spravato, which are expected to help offset the revenue loss from Stelara [3] Group 2: Growth Areas and Acquisitions - The MedTech division is highlighted as a key growth area, with recent acquisitions like Abiomed and Shockwave Medical enhancing the company's offerings and providing resilience against patent cliffs [4] - The company is focusing on a long-term capital deployment strategy rather than pursuing M&A deals out of desperation to replace lost revenue [5] Group 3: Market Performance and Analyst Sentiment - Despite concerns regarding revenue loss, Johnson & Johnson's stock reached an all-time high of $220.11, reflecting a 5.45% increase year-to-date and a 47.59% rise over the past year [7] - Analyst consensus remains bearish, with an average price target of $198.82, indicating a potential downside of 9.07% from current stock levels [7]

Johnson & Johnson (NYSE:JNJ) is included among the 13 Best Dividend Kings to Buy in 2026. CAPLYTA Shows Stronger Remission Results in Phase 3 MDD Data, JNJ Says On January 16, Johnson & Johnson (NYSE:JNJ) shared results from a new analysis of Phase 3 data showing that CAPLYTA (lumateperone), when used alongside an antidepressant, delivered significantly higher remission rates in adults with major depressive disorder compared with placebo plus an antidepressant after six weeks. The company also said the b ...

Core Insights - Johnson & Johnson (JNJ) is set to report its fourth-quarter and full-year 2025 results on January 21, with consensus estimates for sales at $24.14 billion and earnings at $2.50 per share [1] - The earnings estimates for 2025 have slightly decreased from $10.87 to $10.83 per share, and for 2026 from $11.48 to $11.46 per share over the past 60 days [1] Earnings Estimates - Current earnings estimates for Q1, Q2, FY 2025, and FY 2026 are $2.49, $2.77, $10.83, and $11.46 respectively, showing a downward trend in estimates over the past 60 days [2] - JNJ has a history of exceeding earnings expectations, with an average earnings surprise of 3.75% over the last four quarters [2] Business Segment Performance - The Innovative Medicine segment is expected to show growth driven by key products like Darzalex, Tremfya, and Erleada, with sales estimates of $3.74 billion, $1.36 billion, and $936 million respectively [5] - The MedTech business has improved due to acquisitions and is expected to continue strong performance in cardiovascular and surgical units, with a sales estimate of $8.71 billion [10][11] Challenges and Competition - The launch of several biosimilars for Stelara has negatively impacted its sales, with an estimated decline of 1070 basis points in the third quarter and expected further decline in the fourth quarter [7] - Sales of Imbruvica are anticipated to decline due to competitive pressures and the redesign of Medicare Part D, with an estimate of $670 million [8][9] Future Outlook - JNJ plans to provide an updated financial outlook for 2026, expecting over 5% revenue growth, which is higher than the previous consensus estimate of 4.6% [12] - The company has advanced its pipeline significantly, with 10 new products expected to potentially deliver peak sales of $5 billion [22] Stock Performance and Valuation - JNJ shares have outperformed the industry, rising 48.7% over the past year compared to the industry growth of 24.1% [15] - The stock is currently trading at a price/earnings ratio of 19.01, higher than the industry average of 17.73 and above its five-year mean of 15.65 [18] Investment Considerations - JNJ's diversified business model, strong cash flows, and consistent dividend increases over 63 years make it a compelling investment despite current challenges [20][24]