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    Analytical review of Johnson & Johnson's shares as of 03.06.2016

    Johnson & Johnson, #JNJ [NYSE]
    Health care, Production of drugs, USA

    Financial performance:
    Index –DJIA, S&P 500;
    Beta – 0.63;
    Capitalization - 287.98 В;
    Assets profitability - 11.70%;
    Average volume – 9.22 М;
    Сред. объём – 9.22 М;
    P/E - 18.99;
    ATR – 1.81.

    Analytical review:

    • The company's shares have grown by over 5.5% in the past two months. The quotes are expected to rise further;
    • The Company has the biggest capitalization in the public health sector among the issuers listed on the US stock market;
    • According to the latest report (on the 1st quarter of the fiscal year 2016), the company's revenue increased 0.6% to 17.48 billion USD which is 60 billion USD higher than a market expectation. Johnson & Johnson announced a net profit of $1.68 per share, which is better than a forecast value of $1.65 per share;
    • Financial multipliers also indicate the managers' efficient work. The pharmaceutical giant shows high operating and net profit margins (26.95% and 21.92%, respectively) as compared to competitors' respective results (14.81% and 11.10%);
    • Also, the Company's Return on equity and assets is the highest in the industry. Return on assets amounts to 11.62% and Return on equity - to over 21.5%, while the average values for this industry equal 10.88% and 15.52%, respectively;
    • More than 65% of the company's stock belongs to institutional investors. The biggest shareholders are Vanguard Group (6.57%) and State Street Corporation (5.27%);

    Summary:

    • The company's recent report proves that the company's management has been working efficiently. Despite the strong dollar's pressure, the company's results proved to be better than analysts' forecasts.
    • The analysis of multipliers indicates the probability of the company's stock growth.
    • Major part of Johnson & Johnson's stock belongs to institutional investors.
    • Thus, we expect that the company's quotes will be rising in the nearest future.

    Trading tips for Johnson & Johnson's CFDs

    Key levels:
    Support levels: 113.55 USD, 112.30 USD
    Resistance levels: 114.50 USD, 114.95 USD

    Medium-term trading, H1
    The issuer is currently trading between the support and resistance levels of 113.55/114.50 USD. Once a resistance level of 114.50 USD is broken and tested and relevant confirming signals appear (PriceAction patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 116.00 USD, 117.50 USD and 119.50 USD, with Trailing Stop applied.

    Medium-term trading, H1
    Medium-term trading, H1

    Short-term trading, M15
    The issuer is currently trading near the demand zone of 114.00-114.30 USD. Once this zone steadies, we recommend searching for market entry points to open long positions. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 114.90 USD, 115.40 USD and 115.80 USD, with Trailing Stop applied.

    Short-term trading, M15
    Short-term trading, M15


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