This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Johnson & Johnson Beats on EPS but Sags on a Technical Basis

NEW YORK (TheStreet) -- Dow component Johnson & Johnson (JNJ - Get Report) beat analysts' earnings per share estimates by 12 cents, earning $1.66 a share when it reported earnings before the opening bell Tuesday. The large-cap pharmaceutical company also beat on revenue and raised full-year guidance.

While the Dow Jones Industrial Average set an all-time intraday high at 17120.34 this morning, J&J slumped to its 50-day simple moving average after leading the index until July 7.

Good news was thus priced into the company's share price upward momentum going into quarterly results. The stock set an all-time intraday high at $106.74 on July 7, which was a test of the weekly risky level at $106.61 that was shown in my pre-earnings covering all 30 Dow components posted that same day. J&J closed July 3 at $105.42 and was up 15% for the year to date on that date.

>>Fed Chair Yellen Says Small Biotech Stocks Over-Valued

>>Goldman Sachs Earnings Reflect Banking Sector's Troubles

Johnson & Johnson is not a cheap stock. It has a 12-month trailing earnings per share ratio of 18.6 with a dividend yield of 2.7%. The stock trades at 11 times book value.

Let's look at the daily chart:

Courtesy of MetaStock Xenith

Johnson & Johnson, which recently traded around $103, opened Tuesday above its 21-day simple moving average at $104.84, then traded as low as $102.77, holding its 50-day simple moving average at $102.88. The stock is well above its 200-day simple moving average at $95.75. Daily 12x3x3 daily slow stochastic declined to 52.00 on a scale of 00.00 to 100.00.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
JNJ $102.34 0.00%
AAPL $129.36 0.00%
FB $79.33 -0.34%
GOOG $573.64 0.00%
TSLA $199.56 0.00%


DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs