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J&J Stock Trading Above 50- & 200-Day SMA for 6 Months: How to Play
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Key Takeaways
JNJ has traded above its 50- and 200-day SMAs since June, with a golden cross formed in mid-July.
J&J's Innovative Medicine unit delivered organic growth in 2025 despite Stelara's loss of exclusivity.
JNJ advanced its pipeline with new approvals and launches, while MedTech showed signs of recovery.
Johnson & Johnson’s (JNJ - Free Report) stock has been consistently trading above its 50-day and 200-day simple moving averages (SMAs) since the end of June. It achieved the golden cross in mid-July. The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average crosses above the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a bullish signal suggesting potential for a prolonged upward trend. The 50-day SMA has been above the 200-day SMA since it achieved the golden cross in July. This scenario confirms that J&J’s medium-term momentum continues to outpace the long-term trend, reinforcing bullish sentiment.
Image Source: Zacks Investment Research
The stock’s strong price performance has been driven by its strong operational performance so far in 2025, backed by double-digit growth in revenues from key brands and contributions from new launches. The company expects accelerated momentum in 2026.
Let’s understand J&J’s strengths and weaknesses to better analyze how to play the stock after it reaches this important support level.
JNJ’s Innovative Medicine Showing Consistent Strength
J&J’s Innovative Medicine unit is showing a growth trend. The segment’s sales rose 3.4% in the first nine months of 2025 on an organic basis despite the loss of exclusivity (LOE) of its multi-billion-dollar product, Stelara, and the negative impact of the Part D redesign. The third quarter was the segment’s second consecutive quarter of sales of more than $15 billion despite Stelara’s LOE. Growth is being driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.
In 2026, J&J expects accelerated growth in the Innovative Medicine segment to be driven by its key products as well as new drugs and recently launched products, including Tremfya in inflammatory bowel disease (IBD), Rybrevant plus Lazcluze in non-small cell lung cancer and the newly approved drug, Inlexzo in bladder cancer.
J&J’s Significant Pipeline Progress This Year
J&J has rapidly advanced its pipeline this year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. This year, it gained approval for new products like Inlexzoh/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for treating generalized myasthenia gravis. J&J believes that nipocalimab has a pipeline-in-a-product potential. Regulatory applications were recently filed for another key candidate, icotrokinra, for moderate-to-severe plaque psoriasis. J&J believes that icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-a-day pill.
Three of J&J’s new cancer drugs are Carvykti, a BCMA CAR-T therapy for relapsed or refractory multiple myeloma; Tecvayli, for relapsed or refractory multiple myeloma; and Talvey, a novel bispecific therapy for heavily pretreated multiple myeloma. These drugs have also begun to contribute to top-line growth. Combined, they generated $2.14 billion in sales in the first nine months of 2025.
J&J’s acquisition of Intra-Cellular Therapies this year added antidepressant drug, Caplyta, to its neuroscience portfolio, which is approved for the treatment of schizophrenia, depression in both bipolar 1 and 2, and major depressive disorder.
J&J believes 10 of its new products/pipeline candidates in the Innovative Medicine segment have the potential to deliver peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, newly acquired Caplyta, Inlexzo, Rybrevant, plus Lazcluze and icotrokinra.
J&J’s MedTech Segment Sales Improving
J&J’s MedTech business has improved in the past two quarters, driven by the acquired cardiovascular businesses, Abiomed and Shockwave, as well as Surgical Vision and wound closure in Surgery. Improvements in J&J’s electrophysiology business also drove growth.
Moreover, the potential separation of its Orthopaedics franchise into a standalone orthopedics-focused company, called DePuy Synthes, should improve its MedTech unit’s growth and margins. The Orthopaedics franchise has been a slow-growth business for J&J.
In 2026, J&J expects better growth in the MedTech business than in 2025, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets. J&J expects to launch new products like the Shockwave C2 Aero catheter and the Tecnis intraocular lens in the United States, as well as a regulatory submission for the OTTAVA robotic surgical system in 2026. These new products may also contribute to growth in 2026.
However, the company continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China. J&J expects continued impacts from VBP issues in China as the program continues to expand across provinces and products.
Patent Expiration of J&J’s Drug Stelara & Other Headwinds
J&J lost U.S. patent exclusivity of Stelara in 2025. Stelara was a key top-line driver for J&J, accounting for around 18% of J&J’s Innovative Medicine unit’s sales in 2024, before it lost patent exclusivity in 2025.
Several biosimilar versions of Stelara have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries (TEVA - Free Report) , Samsung Bioepis/Sandoz and some other companies have launched Stelara biosimilars. The launch of generics is significantly eroding Stelara’s sales and hurting J&J’s sales and profits in 2025. Stelara sales declined around 40% in the first nine months of 2025.
In addition, sales in 2025 are being hurt by the impact of the Medicare Part D redesign under the Inflation Reduction Act (IRA). The Part D redesign is mainly affecting sales of drugs like Stelara, Tremfya, Erleada and pulmonary hypertension drugs. J&J expects a negative impact of approximately $2 billion in sales due to the Medicare Part D redesign in 2025.
J&J faces more than 73,000 lawsuits for its talc-based products, primarily baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer. J&J insists that its talc-based products are safe and do not cause cancer. The company permanently discontinued the sales of the talc-based Johnson’s Baby Powder.
In April, a bankruptcy court in Texas rejected J&J’s proposed bankruptcy plan to settle its talc lawsuits after a two-week trial in Houston. J&J has gone back to the traditional tort system to fight the lawsuits individually, with its bankruptcy strategy to settle the lawsuits failing for the third time.
J&J Stock Price, Valuation and Estimates
J&J’s shares have outperformed the industry in the past year. The stock has risen 42.1% in the past year compared with a 15.2% increase in the industry. The stock has also outperformed the sector and the S&P 500 Index, as seen in the chart below.
JNJ Stock Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 17.98 forward earnings, higher than 17.27 for the industry. The stock is also trading above its five-year mean of 15.65.
JNJ Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings has risen from $10.86 per share to $10.87 per share and from $11.46 per share to $11.49 per share for 2026 over the past 60 days.
JNJ Estimate Movement
Image Source: Zacks Investment Research
Invest in J&J Stock
J&J expects sales growth in both segments to be higher in 2026. It also boasts strong cash flows and has consistently increased its dividends for 63 consecutive years.
Despite headwinds like softness in the MedTech unit, the legal battle surrounding its talc lawsuits, the Stelara patent cliff and the impact of Part D redesign, J&J looks quite confident that it will be able to navigate these challenges.
Image: Bigstock
J&J Stock Trading Above 50- & 200-Day SMA for 6 Months: How to Play
Key Takeaways
Johnson & Johnson’s (JNJ - Free Report) stock has been consistently trading above its 50-day and 200-day simple moving averages (SMAs) since the end of June. It achieved the golden cross in mid-July. The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average crosses above the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a bullish signal suggesting potential for a prolonged upward trend. The 50-day SMA has been above the 200-day SMA since it achieved the golden cross in July. This scenario confirms that J&J’s medium-term momentum continues to outpace the long-term trend, reinforcing bullish sentiment.
The stock’s strong price performance has been driven by its strong operational performance so far in 2025, backed by double-digit growth in revenues from key brands and contributions from new launches. The company expects accelerated momentum in 2026.
Let’s understand J&J’s strengths and weaknesses to better analyze how to play the stock after it reaches this important support level.
JNJ’s Innovative Medicine Showing Consistent Strength
J&J’s Innovative Medicine unit is showing a growth trend. The segment’s sales rose 3.4% in the first nine months of 2025 on an organic basis despite the loss of exclusivity (LOE) of its multi-billion-dollar product, Stelara, and the negative impact of the Part D redesign. The third quarter was the segment’s second consecutive quarter of sales of more than $15 billion despite Stelara’s LOE. Growth is being driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.
In 2026, J&J expects accelerated growth in the Innovative Medicine segment to be driven by its key products as well as new drugs and recently launched products, including Tremfya in inflammatory bowel disease (IBD), Rybrevant plus Lazcluze in non-small cell lung cancer and the newly approved drug, Inlexzo in bladder cancer.
J&J’s Significant Pipeline Progress This Year
J&J has rapidly advanced its pipeline this year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. This year, it gained approval for new products like Inlexzoh/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for treating generalized myasthenia gravis. J&J believes that nipocalimab has a pipeline-in-a-product potential. Regulatory applications were recently filed for another key candidate, icotrokinra, for moderate-to-severe plaque psoriasis. J&J believes that icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-a-day pill.
Three of J&J’s new cancer drugs are Carvykti, a BCMA CAR-T therapy for relapsed or refractory multiple myeloma; Tecvayli, for relapsed or refractory multiple myeloma; and Talvey, a novel bispecific therapy for heavily pretreated multiple myeloma. These drugs have also begun to contribute to top-line growth. Combined, they generated $2.14 billion in sales in the first nine months of 2025.
J&J’s acquisition of Intra-Cellular Therapies this year added antidepressant drug, Caplyta, to its neuroscience portfolio, which is approved for the treatment of schizophrenia, depression in both bipolar 1 and 2, and major depressive disorder.
J&J believes 10 of its new products/pipeline candidates in the Innovative Medicine segment have the potential to deliver peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, newly acquired Caplyta, Inlexzo, Rybrevant, plus Lazcluze and icotrokinra.
J&J’s MedTech Segment Sales Improving
J&J’s MedTech business has improved in the past two quarters, driven by the acquired cardiovascular businesses, Abiomed and Shockwave, as well as Surgical Vision and wound closure in Surgery. Improvements in J&J’s electrophysiology business also drove growth.
Moreover, the potential separation of its Orthopaedics franchise into a standalone orthopedics-focused company, called DePuy Synthes, should improve its MedTech unit’s growth and margins. The Orthopaedics franchise has been a slow-growth business for J&J.
In 2026, J&J expects better growth in the MedTech business than in 2025, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets. J&J expects to launch new products like the Shockwave C2 Aero catheter and the Tecnis intraocular lens in the United States, as well as a regulatory submission for the OTTAVA robotic surgical system in 2026. These new products may also contribute to growth in 2026.
However, the company continues to face headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program, which is a government-driven cost containment effort in China. J&J expects continued impacts from VBP issues in China as the program continues to expand across provinces and products.
Patent Expiration of J&J’s Drug Stelara & Other Headwinds
J&J lost U.S. patent exclusivity of Stelara in 2025. Stelara was a key top-line driver for J&J, accounting for around 18% of J&J’s Innovative Medicine unit’s sales in 2024, before it lost patent exclusivity in 2025.
Several biosimilar versions of Stelara have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries (TEVA - Free Report) , Samsung Bioepis/Sandoz and some other companies have launched Stelara biosimilars. The launch of generics is significantly eroding Stelara’s sales and hurting J&J’s sales and profits in 2025. Stelara sales declined around 40% in the first nine months of 2025.
In addition, sales in 2025 are being hurt by the impact of the Medicare Part D redesign under the Inflation Reduction Act (IRA). The Part D redesign is mainly affecting sales of drugs like Stelara, Tremfya, Erleada and pulmonary hypertension drugs. J&J expects a negative impact of approximately $2 billion in sales due to the Medicare Part D redesign in 2025.
J&J faces more than 73,000 lawsuits for its talc-based products, primarily baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer. J&J insists that its talc-based products are safe and do not cause cancer. The company permanently discontinued the sales of the talc-based Johnson’s Baby Powder.
In April, a bankruptcy court in Texas rejected J&J’s proposed bankruptcy plan to settle its talc lawsuits after a two-week trial in Houston. J&J has gone back to the traditional tort system to fight the lawsuits individually, with its bankruptcy strategy to settle the lawsuits failing for the third time.
J&J Stock Price, Valuation and Estimates
J&J’s shares have outperformed the industry in the past year. The stock has risen 42.1% in the past year compared with a 15.2% increase in the industry. The stock has also outperformed the sector and the S&P 500 Index, as seen in the chart below.
JNJ Stock Outperforms Industry, Sector & S&P 500
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 17.98 forward earnings, higher than 17.27 for the industry. The stock is also trading above its five-year mean of 15.65.
JNJ Stock Valuation
The Zacks Consensus Estimate for 2025 earnings has risen from $10.86 per share to $10.87 per share and from $11.46 per share to $11.49 per share for 2026 over the past 60 days.
JNJ Estimate Movement
Invest in J&J Stock
J&J expects sales growth in both segments to be higher in 2026. It also boasts strong cash flows and has consistently increased its dividends for 63 consecutive years.
Despite headwinds like softness in the MedTech unit, the legal battle surrounding its talc lawsuits, the Stelara patent cliff and the impact of Part D redesign, J&J looks quite confident that it will be able to navigate these challenges.
J&J’s price appreciation this year, rising estimates and consistent earnings and sales growth suggest one may consider investing in this Zacks Rank #2 (Buy) stock for now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.