Should I buy Johnson & Johnson stock in 2025?

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At HelloSafe, our expert has been monitoring Johnson & Johnson’s performance for more than three years. Each month, hundreds of thousands of users in the United States rely on us to break down market trends and highlight the top investment opportunities. Our analyses are created for informational purposes only and should not be considered as investment advice. In line with our ethical standards, we have never been, and will never be, compensated by Johnson & Johnson.

What is Johnson & Johnson?

How much is Johnson & Johnson stock?

The price of Johnson & Johnson stock is falling this week. As of today, JNJ trades at $154.46, reflecting a 1.18% drop over the past 24 hours and a 0.30% decline for the week. The company’s market capitalization stands at $372.23 billion, with an average three-month daily trading volume of 9.62 million shares. Johnson & Johnson’s P/E ratio is 17.17, offering a dividend yield of 3.37%, and the stock maintains a low beta of 0.28, signaling less volatility compared to the broader market. With its steady dividend history and defensive healthcare positioning, JNJ continues to appeal to investors seeking stability in uncertain times.

Our full analysis on Johnson & Johnson stock

Having reviewed Johnson & Johnson’s Q1 2025 financial results and conducting a thorough assessment of the stock’s trajectory over the last three years, we leveraged integrated analytics across fundamental metrics, technical signals, comparative market data, and sector movements—processed through our proprietary evaluation models. In doing so, we aimed to distill the core drivers shaping JNJ’s value proposition today. So, why might Johnson & Johnson stock once again become a strategic entry point into the global healthcare sector in 2025?

Recent Performance and Market Context

Johnson & Johnson (NYSE: JNJ) continues to be a benchmark for stability in the healthcare sector, especially in a market shaped by increased focus on medical innovation and resilience. The stock is currently priced at $154.46, reflecting minor turbulence in the past week (-0.30%) and month (-3.35%), yet demonstrating a notable year-to-date advance of +6.80%. Over the 6-month period, JNJ has modestly appreciated (+2.65%), indicating relative strength as macro volatility prompts flight-to-quality rotations.

Recent positive macroeconomic events—such as robust sector-wide demand for innovative medicines and the continuation of secular healthcare spending growth—have created a constructive backdrop. Additionally, JNJ’s ongoing capital allocation discipline and strategic reinvestment, including a planned $55 billion in U.S. investments over the next four years, have energized investor confidence. Notably, the stock’s defensiveness is underscored by its low beta of 0.28, offering a portfolio ballast in uncertain times.

The company’s Q1 2025 results delivered a revenue beat at $21.9 billion (+2.4% YoY) and healthy free cash flow generation ($3.4 billion), with notably strong operational sales growth in both its Innovative Medicine (+4.2%) and MedTech (+4.1%) divisions. Regulatory tailwinds—such as recent FDA approvals for critical therapies like TREMFYA in Crohn’s disease—reflect momentum likely to continue supporting robust fundamentals.

Technical Analysis

Current technical indicators present a balanced, yet increasingly compelling structure for new or incremental entry. With shares trading at $154.46, JNJ is consolidating near its 20-day ($154.30) and 100-day ($154.13) moving averages, providing evidence of technical support at these levels. Notably, the price sits just below the longer-term 200-day moving average ($157.11), a threshold that, if reclaimed, could act as a trigger for renewed institutional participation and momentum rotation.

The 14-day Relative Strength Index (RSI) at 45.69% lies squarely within neutral territory, suggestive of a reset from overbought conditions and pointing to latent upside potential should positive catalysts materialize. The MACD reveals mixed signals (short-term +1.26, mid-term -4.17, long-term +1.43), which aligns with the current price consolidation—the foundation from which bullish reversals often emerge as new catalysts unfold.

Support is robust at $153.36, with resistance forming at $155.09. Importantly, the stock remains comfortably above its 52-week low of $140.68—signaling strong longer-term investor conviction—even as short-term headwinds have provided a technical window for accumulation.

Fundamental Analysis

Johnson & Johnson’s underlying fundamentals reinforce its standing as a premier healthcare holding, especially for those seeking consistent value creation. The most recent quarter saw adjusted operational sales growth of 3.3% and a significant YoY net earnings increase, driven partly by the reversal of special charges. Adjusted EPS stands at $2.77 (Q1 2025), up 2.2%—numbers that speak to healthy core growth.

Valuation metrics highlight both stability and upside. JNJ is trading at a P/E ratio of 17.17—attractive for a sector blue chip with a robust growth pipeline, especially considering the company’s forward guidance for adjusted EPS of $10.50-$10.70 (+5.2% to +7.2%). Its healthy dividend yield of 3.37%—recently increased for the 63rd consecutive year—sets it apart, with payout reliability further boosting long-term investor appeal.

Strategically, JNJ is benefiting from a diversified business structure, excelling in both pharmaceuticals (Innovative Medicine) and medical devices (MedTech). Its global leadership in oncology, immunology, cardiovascular, neuroscience, and general surgery products has underpinned market share gains. Continuous innovation, supported by deep R&D investments and an acquisitive approach (such as the recent Intra-Cellular Therapies deal), extends its edge.

• Brand trust and resilience: Built on decades of market-leading products and consumer safety focus.
• Financial scale: A $372 billion market capitalization enables opportunistic investment, even amid sectoral headwinds.
• Pipeline depth: Multiple late-stage candidates, FDA fast-tracked therapies, and expanding indications for cornerstone treatments.

Volume and Liquidity

JNJ exhibits the hallmarks of a highly liquid blue chip, with an average daily volume of 9.62 million shares and a current trading volume of 7.33 million (76% of average). This consistency reflects sustained market confidence and ensures low transaction costs for institutional and retail investors alike. The ample float, combined with high analyst coverage, supports dynamic valuation and efficient price discovery—attributes critical for both active traders and core, long-term holders.

Catalysts and Positive Outlook

Looking ahead, the stock’s outlook is reinforced by a series of tangible upside catalysts:

• Pipeline progress: Multiple recent FDA approvals (e.g., TREMFYA, RYBREVANT/LAZCLUZE) and strong clinical results (e.g., Icotrokinra in psoriasis, Nipocalimab Fast Track) are set to invigorate both top- and bottom-line growth. Oncology and immunology remain rapid growth vectors, especially as new launches and indication expansions unfold.
• Transformational innovation: The initiation of clinical trials for the OTTAVA surgical robotic platform positions JNJ at the vanguard of the medtech revolution—potentially unlocking a new high-growth revenue stream in robotics.
• Strategic M&A: Seamless integration of the Intra-Cellular Therapies acquisition enhances the neuroscience segment and signals management’s ongoing commitment to strengthening core capabilities.
• Dividend strength: The 4.8% increase in the quarterly dividend underscores a management team prioritizing shareholder returns and confidence in long-term cash flow growth.
• Financial resiliency: Low beta and strong cash generation provide insulation against broader market volatility and economic cycles.
• ESG leadership: Long-standing commitments to corporate responsibility, healthcare access, and diversity position JNJ favorably with ESG-focused capital.

Broader sector trends—growing healthcare expenditure, regulatory support for innovation, and demographic-driven demand—support a structurally positive outlook for blue chip healthcare names like JNJ.

Investment Strategies

For investors evaluating entry or incremental addition to JNJ, several timeframes appear attractive:

• Short-Term:
• Technical consolidation near key support ($153.36) and just below moving averages provides a tactical entry opportunity. Bullish momentum could accelerate on a clean break above the 200-day MA ($157.11), especially with positive news flow from ongoing clinical trials or new regulatory approvals.
• The impending ex-dividend date (May 27, 2025) and elevated dividend yield may draw in income-focused strategists seeking reliable payouts.
• Medium-Term:
• Q2 and H2 2025 earnings, pipeline updates (notably stemming from oncology and immunology assets), and progress in the OTTAVA robotic system each serve as potential catalysts for re-rating. The stock’s current trade below its average analyst price target (+30% upside implied) positions JNJ as undervalued versus historical norms and sector multiples.
• Strategic clarity on the management of talc-related litigation—now returning to the tort system—could also act as a risk overhang removal and sentiment trigger.
• Long-Term:
• JNJ’s legacy of sustained dividend increases, coupled with global leadership in drug and MedTech innovation, argues for a core portfolio holding. The upcoming four-year, $55 billion U.S. investment plan promises additional margin expansion and organic growth.
• Demographics and worldwide healthcare infrastructure development provide secular tailwinds, while robust cash flows and disciplined capital management add layers of downside mitigation.

Ideal positioning would see investors scaling in during periods of technical support—such as the present consolidation zone—or ahead of anticipated clinical/pipeline milestones, to capture both near-term upside and compounding long-term returns.

Is it the Right Time to Buy Johnson & Johnson?

Synthesizing the key findings, Johnson & Johnson currently demonstrates the critical attributes of an attractive investment: durable operating momentum, a uniquely diversified and innovative platform, robust dividend growth, high average liquidity, and strong cash flows. Its valuation—anchored by a conservative P/E multiple and fortified by a forward dividend yield of 3.37%—remains compelling, particularly when compared to sector peers of similar quality. Technical indicators suggest the stock may be transitioning toward a new bullish phase, while recent strategic initiatives and pipeline successes point to further earnings expansion in 2025 and beyond.

Undoubtedly, macro and company-specific watchpoints (including product segment headwinds and litigation) merit ongoing monitoring. Nevertheless, JNJ’s structural strengths, combined with a clear roadmap for growth and shareholder returns, seem to represent an excellent opportunity for investors seeking a resilient anchor in the healthcare sector.

For those seeking growth, stability, and income in a single blue-chip, Johnson & Johnson’s current valuation, technical posture, and bullish long-term outlook justify renewed interest and consideration—as it appears primed to capture fresh upside amid an increasingly favorable healthcare landscape. The present consolidation phase may well signal the early innings of a new cycle of outperformance, making the case for Johnson & Johnson as a strategic portfolio addition in 2025.

How to buy Johnson & Johnson stock in United States?

Buying Johnson & Johnson (JNJ) stock online is both simple and secure thanks to regulated U.S. brokers. Retail investors have direct access to JNJ shares through intuitive investment platforms. The two main methods to gain exposure are classic “spot” buying (owning the actual stock) and trading Contracts for Difference (CFDs), which allow you to profit from price movements without owning the shares. Both methods are accessible from your computer or smartphone, with instant order execution and transparent fee structures. To help you choose the platform that suits your needs, you’ll find a detailed broker comparison further down the page.

Spot Buying

Spot buying means you purchase real Johnson & Johnson shares in your own name. This method is favored by long-term investors who want to benefit from stock price appreciation and dividend payments. With U.S. brokers, typical fees include a fixed commission per order—usually ranging from $0 to $7 per trade depending on the platform.

Key example

For example, if JNJ shares are trading at $154.46 and you invest $1,000, you could buy about 6 shares (since $154.46 × 6 = $926.76) after factoring in a $5 brokerage fee. If the share price increases by 10%, your investment would be worth about $1,100. Result: a +$100 gross gain, representing a +10% return before taxes and fees.

Trading via CFD

CFD trading allows you to speculate on Johnson & Johnson’s price without owning the underlying shares. CFDs are financial contracts that let you go long (buy) or short (sell) the stock, often with leverage. With CFDs, fees are generally charged as a spread (the difference between buy and sell price), plus overnight financing if you hold positions overnight.

Key example

For example, with a $1,000 deposit and 5x leverage, you would control a position worth $5,000 on JNJ shares. If the stock rises by 8%, your gain would be 8% × 5 = 40%. That’s a $400 profit on your $1,000 stake—excluding fees such as spreads and overnight charges.

Final Advice

Before investing in Johnson & Johnson, be sure to compare brokers’ fees, platform features, and trading conditions—details are provided in our comparison tool further down this page. The right choice of method ultimately depends on your objectives: spot buying is more suitable for long-term investors seeking dividends, while CFDs may appeal to active traders looking to use leverage. Take the time to inform yourself and choose the option that best matches your investment goals.

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Our 7 tips for buying Johnson & Johnson stock

The latest news about Johnson & Johnson

Johnson & Johnson announced a 4.8% dividend increase, marking its 63rd consecutive year of growth. The company’s most recent dividend hike raises its quarterly payout to $1.30 per share, offering a forward yield of 3.37%. This sustained track record affirms Johnson & Johnson’s status as a “Dividend Aristocrat” and underlines its ongoing commitment to shareholder returns—a key consideration for U.S. income-oriented investors. The upcoming ex-dividend date is May 27, 2025, making it particularly relevant for those seeking consistent and growing dividends from blue-chip stocks in tax-advantaged accounts such as IRAs and 401(k)s.

Strong first-quarter 2025 results highlight operational sales growth and successful new product launches in key U.S. segments. The company reported Q1 revenue of $21.9 billion, up 2.4% year-over-year, with operational sales growth of 4.2% and adjusted EPS climbing 2.2% to $2.77. Especially notable was robust performance in the U.S. Innovative Medicine segment, driven by double-digit growth from oncology products like DARZALEX and newer therapies such as CARVYKTI and ERLEADA, as well as impressive results from MedTech’s cardiovascular offerings through Abiomed. These results emphasize the company’s resilience and effective strategy in competitive U.S. pharmaceutical and medical device markets despite softness in certain legacy products.

Johnson & Johnson secured key FDA approvals and advances in its pipeline for the U.S. market within the past week. The FDA’s approval of TREMFYA for adult patients with moderately to severely active Crohn’s disease further bolsters the company’s immunology portfolio in the United States, expanding the addressable patient population and supporting future revenue streams. In addition, the FDA granted Fast Track designation to Nipocalimab for Sjögren’s disease and positive clinical results for existing oncology therapies suggest continued momentum for its U.S.-focused pipeline, reinforcing J&J’s innovation leadership in critical therapeutic areas.

J&J reaffirmed its commitment to U.S.-based growth by announcing over $55 billion in new domestic investment over four years. This large-scale strategic allocation underscores the company’s confidence in the U.S. market and its intention to expand manufacturing, research, and operations domestically. It also signals potential job creation and further integration with the American healthcare system. These actions are likely to improve the company’s competitive edge, supply chain resilience, and capacity for innovation, each of which are vital long-term drivers of shareholder value.

Analyst consensus remains positive, with strong “Hold” to “Buy” ratings and a significant upside to target price. As of this week, 26 reputable analysts covering Johnson & Johnson maintain an average recommendation between “Hold” and “Buy,” with a calculated price target of $201 per share—representing approximately 30% upside from current trading levels. This positive sentiment is grounded in J&J’s robust fundamentals, diversified portfolio, low volatility profile, and reliable cash flow, solidifying its position as one of the most attractive, defensive large caps in the U.S. healthcare sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.