Sunny Outlook, Incoming Vaccine Data Lifts JNJ to Fresh Highs

The firm expects promising Covid-19 vaccine data to be released next week

Digital Content Manager
Jan 26, 2021 at 9:31 AM
facebook twitter linkedin

Johnson & Johnson (NYSE:JNJ) stock is getting a boost this morning, last seen up 1.8% at an all-time high of $169, after the major company posted better-than-expected fiscal fourth quarter earnings, though profits dropped 56.7% due to litigation expenses. The firm also posted a 2021 outlook that exceeded Wall Street's estimates, and its chief financial officer noted that promising data for its single-dose Covid-19 vaccine trial was expected to come out next week. 

The pharmaceutical stock rallied past overhead pressure at the $156 level -- home to JNJ's former late-April peak -- in late December. The equity has since found a solid leg of support at its 20-day moving average, and sports a strong year-over-year lead of roughly 12%. 

Analysts are optimistic toward the security. Of the 12 in coverage, nine carry a "buy" or better rating, while only three say "hold." Meanwhile, the stock's 12-month consensus price target of $169.13 sits just slightly above last night's close, indicating price-target hikes could be on the horizon. 

Options traders have been overwhelmingly bullish, per JNJ's 50-day call/put volume ratio of 4.65 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all but 1% of readings from the past year, suggesting long calls have been picked up at a faster-than-usual clip.

This sentiment has been echoed by short-term traders, as seen by the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.37, which sits in its lowest annual percentile. This means short-term option traders haven't been more call-biased over the past year. 


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!