WEBULL

Johnson & Johnson (JNJ) Valuation Check After Strong 1 Year Return And Ongoing Litigation Risks

Simply Wall St · 4d ago

Without a specific headline event today, Johnson & Johnson (JNJ) still draws attention from investors reviewing its recent performance, income profile, and current pricing as the healthcare group moves into 2026.

See our latest analysis for Johnson & Johnson.

At a share price of $207.35, Johnson & Johnson has seen a 9.8% 90 day share price return, while its 1 year total shareholder return of 48.8% points to momentum that has been building rather than fading.

If J&J has you thinking more broadly about healthcare, this is a good moment to scan healthcare stocks for other names that might fit your watchlist.

With a 1 year total return near 49%, a value score of 4 and an indicated intrinsic discount of about 42%, the real question is whether J&J is still mispriced or if the market is already charging for future growth.

Most Popular Narrative Narrative: 90% Undervalued

Against a last close of $207.35, the most followed narrative anchors on a fair value closer to $360, which sets up a very different pricing story.

The analysts have a consensus price target of $177.468 for Johnson & Johnson based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $200.0, and the most bearish reporting a price target of just $155.0.

Read the complete narrative.

Curious how a relatively modest growth outlook and a richer future earnings multiple can still justify such a big gap to today’s price? The key lies in how revenue, margins and the chosen discount rate are wired together in this narrative.

Result: Fair Value of $209.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still pressure points to watch, including ongoing talc litigation and the potential revenue impact that could come from key drugs losing exclusivity.

Find out about the key risks to this Johnson & Johnson narrative.

Build Your Own Johnson & Johnson Narrative

If you see the story differently or prefer to work from your own assumptions, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your Johnson & Johnson research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Johnson & Johnson has sharpened your focus, do not stop here. Use the Simply Wall St Screener to spot other opportunities before they slip past you.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.