Johnson & Johnson (JNJ): 2024 Challenges, 2025 Opportunities

3 дня назад

Johnson & Johnson could become one of the standout plays for 2025 if key levels are respected.

A Brief Recap of JNJ in 2024
Johnson & Johnson experienced a challenging year. The company finalized the spin-off of its Consumer Health division, sharpening its focus on Pharmaceuticals and MedTech. In April, J&J completed the acquisition of Shockwave Medical for $12.5 billion, strengthening its cardiovascular MedTech portfolio. Financially, the company performed well, surpassing Q3 expectations with $22.5 billion in revenue (+5.2% YoY) and an EPS of $2.42.

Despite the positives, the stock faced significant headwinds, peaking at $170 in August before dropping to $140 by December—a 15% decline over the quarter.

While we briefly considered a potential outperformance in 2024, we refrained from entering a long position, which proved to be the right decision. Looking ahead, 2025 may offer renewed opportunities. For JNJ to regain bullish momentum, it must respect the lower edge of the long-standing trend channel established in October 2021. Ideally, we would like to see a fake-out below this channel to trigger a bearish shakeout, followed by a reversal that targets higher levels.

For the longer term, our outlook includes the potential to test the $116–$100 range. However, if our 2025 thesis aligns with technical developments, we will consider adding exposure to JNJ.