Johnson & Johnson Stock (JNJ) Poised for Growth Amid Strategic Shift
Johnson & Johnson (JNJ) has defied the underperformance of healthcare stocks, surging 31% in 2025 to reach all-time highs. The company's strategic pivot—divesting its over-the-counter business and focusing on Pharma and MedTech—has driven this rally, with tangible results evident in recent quarters.
Tariff impacts have been milder than anticipated, and a reasonable valuation has reignited bullish sentiment. Analysts are upgrading recommendations and long-term estimates ahead of JNJ's Q3 earnings report on October 14, which could catalyze further upside.
The healthcare giant's transformation from a consumer-focused conglomerate to a pure-play healthcare entity marks a decisive shift. Strong MedTech trends and potential guidance revisions may fuel additional multiple expansion, supporting a Buy thesis for the stock.