Shares of health care conglomerate Johnson & Johnson (JNJ) - Get Report are now trading near all-time highs, recently reaching $115 per share, thanks to a combination of market-leading drugs and dominance in consumer products like baby powder and bandages.

J&J stock closed Tuesday at $114.37, down 0.26%. The shares are up 11.34% so far on the year, compared with a 1% rise in the S&P 500 (SPX) index. Based on Wednesday's closing price, J&J stock has now risen more than 13% over the past 12 months, gaining some 40% above its 52-week low of $81.79. But even with these gains, J&J stock is priced at just 17 times fiscal 2016 estimates of $6.61 per share.

From a technical perspective, Johnson & Johnson's stock chart suggests it could head to around $125, delivering an additional gain of around 9%.

It would be a mistake to sell J&J stock solely based on price. Its fundamental qualities are strong, and investors who are looking to restore their portfolios back to health can do well here. Take a look at the chart below, courtesy of TradingView.

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You would be hard-pressed to find a hotter large-cap stock that has traded more confidently than Johnson & Johnson over the past six months. The stock has risen some 20% since our buy recommendation back in January, thanks to the company's string of earnings beats, which now spans sixteen in row. And while J&J stock now trades above its critical moving averages, those averages will race to catch up.

Thanks to the company's solid fundamentals, J&J stock continues to make higher highs and higher lows. And not only does the company have strong near-term support at around $111, the long-term trend suggests $125 is the next target, as you can seen by the trend of the two long arrows, translating to a possible 9% upward move. Our thesis is supported somewhat by the stock's high analyst 12-month target of $126. Plus, J&J will pay a 2.84% yield for your patience.

How to execute the trade: Buy shares short at market open Wednesday at $114, using $111 as near-term support. This trade will be for a longer-term hold -- at least though the first week of July. The bet is that J&J will extend its earnings beat, sending the stock higher, to $123. At that point, resistance of around $125 will become support.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.