One Reason Why Johnson & Johnson (JNJ) Stock Is Retreating Today
NEW YORK (TheStreet) -- Shares of Johnson & Johnson (JNJ) - Get Report are down 0.24% to $112.58 in midday trading on Thursday as Standpoint Research initiated coverage of the stock with a "sell" rating and $94 price target.
The New Brunswick, NJ-based company now has a market cap of $308 billion, nearly equal to that of Gilead Sciences (GILD), Biogen (BIIB), Mylan (MYL), Celgene (CELG) and Teva Pharmaceutical Industries (TEVA) combined, the firm said, according to Barron's.
"Johnson & Johnson shares are at an all-time high; trading at 18X earnings and should be sold at this time," Standpoint said in its note.
Additionally, the company's revenues are $72 billion, while the combined revenues for the five names above are $87 billion.
"Since August 2010, Johnson & Johnson shares have doubled, and in my opinion, investors should lock in the gain on this overvalued - on an absolute and relative basis - name," the firm added.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and expanding profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: JNJ
