Vladimir Zernov
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Johnson & Johnson

Johnson & Johnson Video 01.03.21.

Johnson & Johnson Stock Gains Ground After FDA Approves Its Vaccine

Shares of Johnson & Johnson gained upside momentum after the company’s coronavirus vaccine was approved for use in the U.S.

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The J&J vaccine is a single-shot vaccine while vaccines from Pfizer/BioNTech and Moderna require two shots. According to the data which was published a month ago, J&J vaccine was 66% effective in preventing moderate-to-severe COVID-19 and offered complete protection against coronavirus-related hospitalization and death. It is also easy to store and administer since it requires only one shot.

The U.S. purchased 100 million doses of the vaccine, and J&J plans to deliver 20 million doses by the end of March. The vaccine may also gain market share outside of the U.S. as convenience and low price are important in these markets.


What’s Next For Johnson & Johnson?

Johnson & Johnson is a huge company, and it remains to be seen whether positive vaccine news will be sufficient enough to push its stock to new highs.

J&J shares have benefited from the rotation into cyclical stocks at the beginning of 2021, but February was not a successful month for the stock.

Currently, Johnson & Johnson is trading at about 16 forward P/E which looks reasonable in the current market environment. In recent days, traders were focused on the potential inflation after the new round of stimulus in the U.S., and fears of high inflation put pressure on some high-flying stocks.

Johnson & Johnson is set to benefit from direct support provided to consumers so the stock may show some strength in case the general market moves lower on inflation worries.

Shares of Johnson & Johnson have already declined by about 8% from all-time high levels that were reached at the end of January, and this pullback may soon attract more investors who are searching for attractive stocks in the current market environment.

For a look at all of today’s economic events, check out our economic calendar.

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