Johnson and Johnson stock is now entering its 5th year of being in my portfolio. Over that time I have had on average $60,000 tied to Put Selling Johnson and Johnson Stock . From 2009 to 2012 I have earned $28,153.00 primarily through Put Selling strategies. This marks a gain of 47% on Johnson and Johnson Stock and an average gain of 11.8% a year. 2013 promises to be interesting . 7 analysts now have a buy recommendation on Johnson and Johnson Stock and 5 analysts have an upgrade on the stock.
Johnson and Johnson Stock Outlook
Reading through all the analysts’ reports the perception is that Johnson and Johnson Stock is undervalued in relation to its earnings potential in 2013 and beyond. In a report from Standards and Poor from last week, they indicated the following on the stock:
1) risk assessment for Johnson and Johnson stock was that Johnson and Johnson products are largely immune from economic cycles.
2) Johnson and Johnson does not rely on any single product category or customer for sustained growth. In other words the company is so heavily diversified and has so many products and customers that not one product or customer could probably damage the returns from their sales growth.
3) Johnson and Johnson enjoys competitive advantages owing to its financial resources, business scale and global sales capabilities.
4) Revenues are projected to rise above 8% from the $67.3 billion in revenue projected for 2012.
5) Synthes which was purchased in mid-2012 will contribute $4.3 billion in 2013 revenue.
6) Medical device sales should also benefit from gains in diabetes care, clinical diagnostics and surgical products.
7) Drugs should see robust revenue gains in new products such as Zytiga, Stelara and Xarelto.
8) Modest gains are expect in Johnson and Johnson consumer products sales.
9) Cost streamlining will impact the bottom line in 2013 and going forward.
10) They project operating earnings per share of $5.55 for 2013 over the $5.10 earned in 2012.
11) They project a price target of $78 for Johnson and Johnson Stock.
Johnson and Johnson Stock Put Selling Strategy Change
I have been a long time investor in Johnson and Johnson Stock through Put Selling and stock trading. I believe there are significant gains to be made in the stock including about a 10% rise in value from where it closed recently at $72.00. The 3 year chart below shows a longer-term pattern of higher highs and higher lows signaling an uptrend in the stock.
As well the chart above shows the significant accumulation of stock throughout this rise including the recent highs. Institutional investors are buying into the belief that Johnson and Johnson Stock is moving higher.
Walk That Profit Home To Momma Strategy
Years ago I wrote about a strategy I use when I believe a stock has significant potential to rise but I prefer to earn my profit through Put Selling using in the money naked puts. The strategy is a combination…………the rest of this strategy discussion article is for FullyInformed Members.
Walk That Profit Home To Momma Strategy
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Johnson and Johnson Stock Internal Links
Johnson and Johnson Stock External Links
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.