Filed under: Major movement, Earnings reports, Forecasts, Good news, Johnson and Johnson (JNJ), Options, Technical Analysis

Johnson & Johnson (NYSE: JNJ - option chain) shares are rising today after the company reported third-quarter earnings of $1.17 per share, which beat estimates of $1.11. Revenues were $15.9B as opposed to $15.7 billion expected and JNJ lifted its full year forecast by about a nickel as well.

Defensive names like JNJ typically perform better than the rest of the market in weak economic times, and this morning’s results show that to still be true for JNJ. If you think that the stock won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JNJ.

JNJ opened this morning at $66.50. So far today the stock has hit a low of $64.15 and a high of $67.48. As of 12:35, JNJ is trading at $64.65, up $1.97 (3.1%). The chart for JNJ looks bearish but S&P gives JNJ a 5 STARS (out of 5) strong buy ranking.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $50 range.

Continue reading Johnson & Johnson (JNJ) posts strong Q3 earnings, raises forecast

Permalink | Email this | Comments

Via [bloggingstocks]

Share This

This entry was posted on Wednesday, October 15th, 2008 at 5:01 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.