With a market cap of $372.9 billion, Johnson & Johnson (JNJ) is a global healthcare leader with a robust and diversified business model spanning pharmaceuticals, medical technologies, and consumer health products. The company leverages innovation and one of the industry’s largest R&D budgets to deliver solutions across a wide range of therapeutic areas.

Shares of the New Brunswick, New Jersey-based company have underperformed the broader market over the past 52 weeks. JNJ has increased 3.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.2%. However, JNJ stock has risen 7.2% on a YTD basis, outperforming SPX's 3.9% decline.

Looking closer, the world's biggest maker of health care products has also outpaced the Health Care Select Sector SPDR Fund's (XLV) 1.9% decrease over the past 52 weeks.

Despite Johnson & Johnson reporting better-than-expected Q1 2025 adjusted EPS of $2.77 and revenue of $21.9 billion, shares fell marginally on Apr. 15 due to concerns over declining Stelara sales, which dropped 33.7% year-over-year. The company also lowered its full-year adjusted EPS forecast to $10.50 - $10.70 due to dilution from the Intra-Cellular Therapies acquisition. Additionally, the inclusion of costs related to new U.S. import tariffs under the Trump administration added further uncertainty.

For the fiscal year ending in December 2025, analysts expect JNJ’s adjusted EPS to grow 6.2% year-over-year to $10.60. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.

Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate Buys,” and 11 “Holds.” 

This configuration is more bullish than three months ago, with eight “Strong Buy” ratings on the stock.

On Apr. 16, Morgan Stanley raised Johnson & Johnson’s price target to $169 and maintained an “Equal Weight” rating after a Q1 beat and updated 2025 revenue guidance. The firm noted that new product cycles are offsetting Stelara declines, while MedTech faces tariff impacts, and pharma tariff risks remain unclear.

As of writing, JNJ is trading below the mean price target of $170.09. The Street-high price target of $185 implies a modest potential upside of 19.4% from the current price levels.