J&J Braces For Q1 Earnings With Bearish Charts And Patent Cliffs In Play

Johnson & Johnson JNJ, will be reporting its first-quarter earnings on April 16. Wall Street expects $2.64 in EPS and $21.4 billion in revenues as the company reports before market hours.

Johnson & Johnson stock is down about 9.54% over the past year, and has dropped 5.88% YTD.

The company confronts patent cliffs that threaten tens of billions in revenue, yet it’s strengthening its cardiac business by acquiring Shockwave Medical for $12.5 billion.

Johnson & Johnson's Stelara is facing increased competition from biosimilars, yet the company is offsetting these challenges with market share gains from newer drugs like Carvykti and Spravato. Meanwhile, strategic acquisitions of Abiomed and Laminar are anticipated to bolster its MedTech segment, countering near-term headwinds.

Let’s take a look at how the stock is technically setup, as it heads into Q1 earnings.

Also Read: Benzinga’s ‘Stock Whisper’ Index: 5 Stocks Investors Secretly Monitor But Don’t Talk About Yet

J&J Stock Technical Setup Ahead Of Q1 Earnings

The technical analysis for Johnson & Johnson stock indicates a strongly bearish trend, with selling pressure indicating potential future bearish movement.

Chart: Benzinga Pro

The share price is below its 5, 20, and 50-day exponential moving averages, reinforcing the bearish sentiment. Additionally, the stock’s price has fallen below its 200-day simple moving average, further signaling a bear trend.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) at -2.59 indicator supports a bearish sentiment, although the Relative Strength Index (RSI) at 26.32 suggests J&J stock is deeply oversold.

For over a month now, J&J stock has been trading in the lower of the Bollinger Bands, indicating bearish sentiments for both short-term and long-term trends. Investors may want to exercise caution and monitor JNJ’s performance closely amid the current technical setup.

J&J Analysts Consensus Ratings

Ratings & Consensus Estimates: The consensus analyst rating on J&J stock stands at a Neutral, with a price target of $171.95.

According to the latest analyst ratings from Cantor Fitzgerald and RBC Capital, Johnson & Johnson’s stock has an average price target of $203.67, indicating a potential 37.15% upside from current levels.

Price Action: Shares of Johnson & Johnson were up 0.04% to $147.59 on Monday.

Read Next: A Closer Look at 9 Analyst Recommendations For Johnson & Johnson

Photo: Shutterstock