JNJ · Verdict
More arguments for
A summary of rules, not a profit forecast — don’t buy just because of a green verdict.
🟡 Valuation- ▲ Forward P/E 23.5 is below the current one — earnings growth expected
🟡 Quality- ▼ Debt up 63% in 3 y
- ▲ ROE 20% — high return on equity
- ▼ Net margin fell: 41.3% → 28.5%
- ▲ Debt / equity 0.59 — moderate debt
- ▲ Free cash flow positive every year
🟡 Growth- ▲ Earnings per share grows 14.9% per year (5 y)
- ▼ Analysts cut the earnings forecast by -4.8% in 90 days
🟢 Trend- ▼ Over 6 mo weaker than its sector (XLV) by 8%
- ▲ Price above SMA200 — long-term uptrend
- ▲ SMA50 above SMA200 — trend up
- ▲ Over a year +45% vs S&P 500 +11% — stronger than the market
🟢 Risk · context, does not vote- ▲ Risk/reward 1:4.4 — the target is farther than the stop
- ▲ Max drawdown in the period -24% — shallow
🟡 Sentiment- ▲ Consensus of 22 analysts — buy
- ▼ Insiders selling over 6 mo
🟢 Market · context, does not vote- ▲ S&P 500 above SMA200 — the market is in an uptrend
- ▲ Sector (XLV) above SMA200 — in an uptrend
- ▲ Sector (XLV) over 3 mo is stronger than the market by 11%
The PWA verdict uses less data than the full version: without the history of multiples and peers, F-score, Altman, interest coverage, dividend streak and expected earnings move.