Is Johnson & Johnson (NYSE:JNJ) a Long Term Growth Play?

Johnson & Johnson (NYSE:JNJ) has been recommended as a long term growth stock according to analysts at Beta Research.  With their stock price currently trading around $139.49, the firm has proven a solid track record of growth over the past few years.  Investors might consider the stock as a long term growth candidate as the firm has yielded 11.20% earnings per share growth over the past 5 years and 2.00% revenue growth over that same time frame. 

Long-term growth (LTG) is an investing strategy where a stock will (hopefully) grow in value for a relatively long period of time.  Long-term growth should be considered to be a relative term, due to different styles and goals of investors, but the endgame is the same. 

A “buy-and-hold” investor will consider long-term growth as a longer time period then a day trader will. The buy-and-hold strategy looks ahead farther into the future, giving short-term price swings less consideration as long as the fundamentals stay the same.  A trader is looking more closely at a weekly, or shorter, time frame and is more interested in immediate price fluctuations.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Johnson & Johnson (NYSE:JNJ)’s stock was 21.07%.  Over the last week of the month, it was -0.20%, 3.97% over the last quarter, and  10.12% for the past six months. 

Over the past 50 days, Johnson & Johnson’s stock is -3.37% off of the high and 8.09% removed from the low.  Their 52-Week High and Low are as follows: -3.37% (High), 27.60%, (Low). 

Despite the past success, investors want to know where the stock is headed from here.  Analysts covering the shares have a consensus short-term price target of $144.81 on the equity.   Analysts have a consensus recommendation of 2.50 based on a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell.  

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