Johnson & Johnson Stock Outperforming as Eyes Move to Earnings

Healthcare giant Johnson & Johnson's stock (NYSE: JNJ) has held up better than most through the recent downturn, with the consumer staples name being seen as a defensive play.

JNJ's stock is down 1.23% in this morning's pre-market session, a considerable outperformance on broader indices.

Since the start of the year, JNJ has gained 6.40%, as the S&P 500 (-13.5%), and Nasdaq 100 (-17%) have endured significant sell offs.. While the last month saw a consolidation with a pullback of 8%, the broader trend since late 2024 remains firmly positive.

From a technical perspective, Johnson & Johnson has recently been pushed beneath both its 50-day Simple Moving Average (SMA), ~$159.50 , and its 200-day SMA ~$156.50. When a stock maintains levels below these averages, it is frequently interpreted as a sign of underlying market weakness and negative momentum.

Markets are now squarely focused on the imminent release of Johnson & Johnson's first-quarter 2025 financial results, anticipated before the market opens on April 15th. This report is highly anticipated as it follows a strong fourth-quarter 2024 performance, where JNJ exceeded Wall Street expectations. In Q4 2024 (reported January 22, 2025), the company posted adjusted earnings per share (EPS) of $2.04 on revenue of $22.5 billion, comfortably beating consensus estimates which hovered around $1.99-$2.00 for EPS and $22.44 billion for revenue.

For the upcoming Q1 2025 announcement, the analyst consensus anticipates EPS to land between $2.59 and $2.65. While beating estimates is always viewed positively, this range notably sits below the $2.71 EPS reported for the comparable quarter last year (Q1 2024). Consequently, the year-over-year comparison will be scrutinised closely, alongside reported revenue figures and, perhaps most critically, management’s updated guidance for the full year 2025. Analysts widely expect growth contributions from JNJ’s powerhouse pharmaceutical division and its expanding MedTech segment, which has been bolstered by strategic acquisitions.

Looking beyond the immediate quarter, the prevailing sentiment among Wall Street analysts tends towards a “Moderate Buy” or “Hold” rating. This reflects a balanced view, weighing the company's established strengths against potential growth moderation and macroeconomic factors. Longer-term forecasts remain constructive, with analysts projecting annual EPS growth ranging from 4.63% to 7.9% over the next few years. Revenue growth expectations are more tempered, estimated at around 3.3% annually. The consensus estimate for full-year 2025 EPS currently centres near $10.58.

As a stalwart in the healthcare sector with a market capitalisation fluctuating between $380 billion and $400 billion, Johnson & Johnson remains a cornerstone holding for many portfolios, particularly those seeking stability, potential dividend income, and moderate growth.