Kenvue Inc. KVUE — the parent company of well-known pharmacy items like Listerine, Mylanta, and Tylenol — is showing a bullish pattern on the charts Tuesday.
The short-term moving average crossed above a long-term one, a signal that Kenvue's stock may be gearing up for another big move.
See below.
Chart created using Benzinga Pro
With the stock already climbing 5.12% in the past year, 7.56% year-to-date, and a whopping 10% over the last month, things are heating up fast for this Johnson & Johnson JNJ spin-off.
Golden Cross Incoming: Kenvue's Bullish Buzz
Let's talk numbers.
Kenvue's stock is trading at $23.20, comfortably above key moving averages. The eight-day simple moving average sits at $22.33, the 20-day SMA is $21.87 and the 50-day SMA trails at $19.94. That's a lot of bullish signals!
Add in the fact that the 200-day SMA is $19.98, and we're on the cusp of a Golden Cross. For traders, that's like hearing the opening bell at a heavyweight title fight—it's go time!
Chart created using Benzinga Pro
Legal Wins Fueling The Fire
If that's not enough to get the bulls excited, Kenvue just scored a big legal win. The company successfully defended itself against a lawsuit over its Tylenol ‘Rapid Release' gelcaps, with plaintiffs claiming they didn't work any faster than regular Tylenol.
Kenvue came out swinging, proving that consumers weren't misled. A victory in the courtroom and strong momentum in the market? Talk about a one-two punch.
Read Also: Johnson & Johnson-Spin Off Kenvue Wins Lawsuit Over Pain Killer Tylenol ‘Rapid Release’ Gelcaps
Brand Power: The Secret Sauce
Kenvue isn't just riding a wave of legal victories and technical indicators—it's also backed by some of the biggest names in consumer health. With a portfolio that also includes Aveeno, Band-Aid, Benadryl, Combantrin and Zyrtec, Kenvue is flexing its brand muscle, generating $15 billion in annual revenue.
Even in a crowded and competitive space, these brands dominate their categories. The company's ability to pivot and innovate (hello, retro Tylenol!) keeps it at the top.
Bulls Vs. Bears: Who Wins?
Kenvue is on the verge of a Golden Cross and boasts a strong brand lineup, the bullish momentum looks poised to continue.
But will it be enough to silence the bears? Only time — and the next few trading days — will tell.
Read Next:
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.