New Brunswick, New Jersey-based Johnson & Johnson (JNJ) primarily focuses on drug discovery and manufacturing but has a diversified business model. With a market cap of $368.7 billion, Johnson & Johnson operates through pharmaceuticals, medical devices and consumer products divisions.

Companies worth $200 billion or more are generally described as "mega-cap stocks." JNJ fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the healthcare sector. The company’s extensive operations span numerous countries, spanning the Americas, EMEA, and the Indo-Pacific.

Johnson & Johnson touched its 52-week high of $169.99 on Mar. 4 and is currently trading 10.3% below that peak. Meanwhile, JNJ stock has dropped 7.6% over the past 52 weeks, performing slightly better than the Health Care Select Sector SPDR Fund’s (XLV) 11.7% decline during the same time frame.

Johnson & Johnson has outperformed the healthcare sector over the longer term as well. JNJ stock has gained 5.4% on a YTD basis and 5.6% over the past 52 weeks, compared to XLV’s 4.4% dip in 2025 and 7.8% drop over the past year.

To confirm the recent downturn, JNJ has traded mostly below its 50-day and 200-day moving averages since early April.

Despite delivering better-than-expected financials, Johnson & Johnson’s stock prices observed a marginal dip after the release of its Q1 results Apr. 15. Driven by a solid growth in US sales, the company’s overall topline for the quarter increased 2.4% year-over-year to $21.9 billion, exceeding the Street’s expectations by 1.3%. Meanwhile, the company’s adjusted EPS inched up 2.2% year-over-year to $2.77, surpassing the consensus estimates by 7.8%. On an even more positive note, JNJ’s free cash flows surged 19.3% year-over-year to $3.4 billion. Following the initial dip, JNJ stock rebounded and remained in the green for the next two trading sessions.

While Johnson & Johnson has lagged behind its peer AbbVie Inc.’s (ABBV) 17.9% gains over the past year, it has outpaced ABBV’s 3% uptick in 2025.

Analysts remain optimistic about the stock’s prospects. Among the 23 analysts covering the JNJ stock, the consensus rating is a “Moderate Buy.” As of writing, JNJ’s mean price target of $169.39 represents an 11.1% upside potential. While the Street-high target of $185 suggests a notable 21.4% premium to current price levels.