Potential for Post-Earnings Sentiment Shift on JNJ Stock

Analysts' outlook has left room for upgrades

Managing Editor
Apr 15, 2019 at 1:28 PM
facebook X logo linkedin


Shares of pharmaceutical giant Johnson & Johnson (NYSE:JNJ) are slightly higher in today's trading, last seen up 0.1% at $136.16. Traders are gearing up for first-quarter earnings, which are slated for before the market opens, tomorrow, April 16. Below we will take a look at how JNJ has been faring on the charts, and see what the options market is pricing in for its post-earnings moves. 

Johnson & Johnson stock has been moving higher his calendar year, and despite its late-December pullback, has rallied to or above the historically support $135 mark. While the 160-day moving average has been a line of resistance for the shares since its late-2018 dip, it also has performed as support in the past -- as recently as mid-August. Year-to-date, JNJ is up 5%. 

Daily JNJ with 160MA SInce April

Moving onto JNJ's earnings history, the blue chip has closed higher the day after reporting in half of its past eight earnings, including a 3.5% surge last July. Over the past two years, the shares have swung an average of 2.6% the day after earnings, regardless of direction. This time around, the options market is pricing in a nearly double, 4.6% swing for tomorrow's trading. 

Digging deeper, the security's Schaeffer’s put/call open interest ratio (SOIR) of 1.20 sits in the 89th percentile of its annual range. In other words, this suggests a larger-than-usual put-skew among near-term options traders. Analyst attention also remains bearish, setting up potential post-earnings bull notes.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI