Johnson & Johnson Q4 Earnings Loom As FDA Approves Depression Drug: Will Long-Term Weakness Reverse?

Johnson & Johnson JNJ will be reporting its fourth-quarter earnings on Wednesday. Wall Street expects $2 in EPS and $22.44 billion in revenues as the company reports before market hours.

The stock is down 8.88% over the past year, up 2.79% YTD.

Johnson & Johnson's Spravato Wins FDA Nod Ahead Of Earnings

Johnson & Johnson has secured FDA approval for expanded use of its Spravato nasal spray, now cleared as a standalone treatment for adults with major depressive disorder who failed at least two oral antidepressants. Previously, it was only approved with oral antidepressants for treatment-resistant depression.

With MDD affecting 21 million U.S. adults, this approval strengthens JNJ's psychiatric drug portfolio. However, Spravato remains restricted under the FDA's REMS program due to its abuse potential.

Investors will watch how this regulatory win impacts Johnson & Johnson's pharma segment ahead of earnings. Let’s look at what the charts indicate for the company and how the stock currently maps against Wall Street estimates.

Read Also: FDA Approves Johnson & Johnson’s Treatment As First Monotherapy For Treatment-Resistant Depression

Johnson & Johnson Reverse Stock Chart Has Mixed Signals

Johnson & Johnson is showing mixed technical signals, with short-term indicators flashing bullish, while longer-term trends suggest potential weakness.

Chart created using Benzinga Pro

The eight-day and 20-day SMAs (simple moving averages) at $145.13 and $144.84, respectively, sit below the stock price of $147.70, indicating short-term bullish momentum.

However, the 50-day SMA at $149.09 and 200-day SMA at $153.75 both remain above the stock price, signaling a broader bearish trend.

The MACD (moving average convergence/divergence) indicator at a negative 0.71 suggests bearish pressure, while the RSI (relative strength index) at 53.98 indicates neutral momentum. Overall, JNJ’s short-term strength faces resistance from a weaker long-term setup, making it a key stock to watch for trend confirmation.

Johnson & Johnson Analysts See 13% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Johnson & Johnson stock stands at a Neutral currently with a price target of $167.71. Recent analyst ratings from BofA Securities and Citigroup suggest an average $167 price target, implying a 12.78% upside for JNJ stock.

Price Action: Johnson & Johnson stock was trading at $147.75 at the time of publication.

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