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    Analytical review of the stocks of Johnson & Johnson on 24.02.2016

    Johnson & Johnson, #JNJ [NYSE]
    Здравоохранение, Производители лекарств, США

    Financial performance of the company:

    Index – DJIA, S&P 500;
    Beta – 0.63;
    Capitalization – 287.98 В;
    Return on asset – 11.70%;
    Income - 15.41 B;
    Average volume – 9.22 М;
    P/E - 18.99;
    ATR – 1.81.


    Analytical review:

    • Company holds the first place on capitalization in the sector of “health care” in the American stock market.
    • At the end of January the company reported for Q4 of the fiscal year 2015. According to press-release, for the reporting period net profit of the company increased by 27.8% (from 2.52 billion USD to 3.22 billion USD). The rise of EPS (earning per share) amounted to 29.2% from 0.89 USD to 1.15 USD.
    • At the press-conference company’s management said that, due to strong USD, company’s revenue for the reporting period fell by 2.4% to 17.81 billion USD. The decline mostly affected production of medical consumer goods (by 7.9% up to 3.31 billion USD).
    • Company’s management said that it expects adjusted EPS (earnings per asset) at the level of 6.43-6.58 USD in 2016.
    • Johnson & Johnson is the second American company with the rating of “ААА” from S&P.
    • Large investment funds and banks (Barclays, RBC Capital, Deutsche Bank) predict the rise of company’s quotes up to 110-115 USD.

    Summary:

    • Company’s performance for Q4 of the fiscal year 2015 showed that the management of the corporation operates efficiently. Despite pressure from the strong USD the company gained significant net profit, although the forecast was negative. Large investment funds predict positive dynamics in the company’s stocks.
    • We expect that in the near future company’s quotes will go up.

    Trading tips for CFD of Johnson & Johnson

    Long-term trading:
    the issuer is traded in the range of 103.00-105.30 USD. After breaking out and testing of the level of 105.30 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 1.5% of the capital. Stop order can be placed slightly below the signal line. Take profit in parts at the levels of 107.50 USD, 109.25 USD 111.00 USD wth the use of trailing stop.


    Medium-term trading: at the moment, the issuer is traded on the timeframe 1H between the local support and resistance levels of 103.00/104.75 USD. We recommend to enter the market after breaking down and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 2.5% of the capital. Stop order can be placed slightly above/below the signal line. Take profit in parts at the levels of 50%, 30% and 20% USD with the use of trailing stop.



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