Johnson & Johnson JNJ is set to release its fourth-quarter earnings report on Wednesday. Analysts expect the company to announce earnings per share (EPS) of $2 and revenues of $22.44 billion prior to the market opening.

The stock has decreased by 8.88% over the past year, though it has seen a 2.79% increase year-to-date.

New FDA Approval for Johnson & Johnson’s Spravato

Recently, Johnson & Johnson received FDA approval for its Spravato nasal spray to be used as a standalone treatment for adults with major depressive disorder (MDD) who have not responded to at least two oral antidepressants. This marks a significant expansion from its prior status, where it was only approved in conjunction with oral antidepressants for treatment-resistant depression.

With MDD impacting 21 million adults in the U.S., this approval bolsters JNJ’s position in the psychiatric drug market. However, due to its potential for abuse, Spravato remains under strict regulations through the FDA’s Risk Evaluation and Mitigation Strategies (REMS) program.

Investors will be keen to see how this recent regulatory approval affects Johnson & Johnson’s pharmaceutical division come earnings day. Let’s explore what the current charts reveal regarding the company’s standing and how it aligns with Wall Street projections.

Read Also: FDA Approves Johnson & Johnson’s Treatment As First Monotherapy For Treatment-Resistant Depression

Analyzing Johnson & Johnson’s Stock Signals

Currently, Johnson & Johnson shows a mix of technical signals. Short-term indicators are suggesting bullish trends, while longer-term assessments indicate potential weakness.

Chart created using Benzinga Pro

The eight-day and 20-day simple moving averages (SMAs) are positioned at $145.13 and $144.84, respectively, both below the current stock price of $147.70, indicating a recent bullish outlook.

In contrast, the 50-day SMA at $149.09 and the 200-day SMA at $153.75 sit above the stock price, signaling a broader bearish environment.

The Moving Average Convergence Divergence (MACD) currently reads negative 0.71, suggesting bearish pressure, while the Relative Strength Index (RSI) stands at 53.98, indicating neutrality. Overall, JNJ’s short-term gains could face challenges from a weaker long-term trend, making it a vital stock to monitor for trend validation.

Analysts Predict Potential Growth for Johnson & Johnson

Ratings & Consensus Estimates: Analysts currently have a neutral consensus rating on Johnson & Johnson, with a target price set at $167.71. Recent updates from BofA Securities and Citigroup point to an average target price of around $167, reflecting an anticipated upside of approximately 12.78% for JNJ stock.

Price Action: As of publication, Johnson & Johnson’s stock was trading at $147.75.

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