Johnson & Johnson (JNJ): 2024 Challenges, 2025 OpportunitiesJohnson & Johnson could become one of the standout plays for 2025 if key levels are respected.
A Brief Recap of NYSE:JNJ in 2024
Johnson & Johnson experienced a challenging year. The company finalized the spin-off of its Consumer Health division, sharpening its focus on Pharmaceuticals and MedTech. In April, J&J completed the acquisition of Shockwave Medical for $12.5 billion, strengthening its cardiovascular MedTech portfolio. Financially, the company performed well, surpassing Q3 expectations with $22.5 billion in revenue (+5.2% YoY) and an EPS of $2.42.
Despite the positives, the stock faced significant headwinds, peaking at $170 in August before dropping to $140 by Decemberβa 15% decline over the quarter.
While we briefly considered a potential outperformance in 2024, we refrained from entering a long position, which proved to be the right decision. Looking ahead, 2025 may offer renewed opportunities. For NYSE:JNJ to regain bullish momentum, it must respect the lower edge of the long-standing trend channel established in October 2021. Ideally, we would like to see a fake-out below this channel to trigger a bearish shakeout, followed by a reversal that targets higher levels.
For the longer term, our outlook includes the potential to test the $116β$100 range. However, if our 2025 thesis aligns with technical developments, we will consider adding exposure to $JNJ.