From June 2018, the share price of Johnson & Johnson (NYSE: JNJ) has been rising, which has resulted in investors attaining a return of 21% on their capital. Hence in this article, I shall ascertain the possibility of Johnson & Johnson having a short-term correction after which it shall commence a bullish ascent. Thus, to ascertain the likelihood of this occurring, I shall look at the fundamentals affecting the stock whilst also analyzing the charts using technical analysis tools.

Johnson & Johnson’s second quarter results of 2018 were good. The firm’s earnings per share rose to $2.10, which surpassed analysts estimate who had it pegged at $2.07 per share. Moreover, the earnings rose by 14.8% from the quarter of a year ago.

Johnson & Johnson’s sales revenue for the second quarter of 2018 stood at $20.83 billion, which is an increase of 10.6% from the prior year’s quarter. Moreover, the revenue level surpassed analysts’ estimates who had it pegged at $20.21 billion. This increase in revenues was due to an operational increase of 8.7% and a positive currency impact of 1.9%. Furthermore, if we exclude the effect of acquisitions and divestitures then the sales revenue rose by 6.3% on an operational basis, which is higher than the 4.3% increase seen in the prior quarter. This rise primarily occurred due to double-digit growth seen in the firm’s pharmaceutical segment coupled with accelerating sales in the medical devices segment. Lastly, the second quarter revenue in the domestic market rose by 9.4% to $10.64 billion and in the international market it rose by 11.8% to $10.19 billion.

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