JOHNSON & JOHNSON Earns High Rating from Multi-Factor Model

JOHNSON & JOHNSON Rated 75% Under Multi-Factor Strategy. The report reveals a favorable assessment based on fundamentals and valuation, with a specific focus on the stock’s low volatility and high net payout yields.

Date: 11-03-2025

AI Rating: 6

Investment Overview

JOHNSON & JOHNSON (JNJ) has received a commendable rating of 75% according to the Multi-Factor Investor model from Validea. This model prioritizes low volatility stocks along with those that display considerable momentum and attractive net payout yields.

Market Cap and Volatility

The stock has passed the market capitalization criterion, indicating a strong position in the market. Additionally, it has also passed the standard deviation test, which signifies a relatively low volatility profile. This aspect is appealing to conservative investors seeking stability.

Momentum and Payout Yield

However, JNJ has received a neutral rating for twelve minus one momentum and net payout yield metrics, indicating that while the company might not be primarily recognized for significant momentum or yield at this stage, it still maintains a stable outlook.

Final Rating Implications

Despite the overall favorable score of 75%, the final rank has resulted in a 'FAIL'. This suggests that there may be underlying concerns that are preventing the stock from achieving a more favorable assessment. Investors should be cautious as the '$FIN' classification may indicate potential weaknesses that could affect future performance.

In conclusion, JNJ remains a significant player in the Biotechnology & Drugs sector, with low volatility profile and strong fundamentals; however, the final rating indicates room for improvement. Potential investors should keep an eye on how these dynamics impact stock price in the future.

Stocks: JNJ