Earlier today, we heard about healthcare stock Johnson & Johnson (NYSE:JNJ) and some potential troubles with weight loss drugs, more specifically, about a short-term decline therein. This news was sufficient to send Johnson & Johnson shares down somewhat in Tuesday afternoon’s trading. Interestingly, it was enough to send those shares down despite a surprise win from, of all things, a lung cancer treatment.
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More specifically, the study in question looked at Rybrevant and Leclaza, two drugs that, when taken together, proved a fairly aggressive defense against EGFR-mutated non-small cell lung cancer. In fact, those who took those two treatments together managed to live longer than those who were only taking AstraZeneca’s (NASDAQ:AZN) Tagrisso. Tagrisso gave patients a median score of an extra 16.6 months, while the combination of Rybrevant and Leclaza delivered a median score of 23.7 months. That’s not only a higher duration, but the duo also delivered a “favorable overall survival trend.”
Certainly, the issues of weight-loss drugs should weigh on some investors’ minds, but the news about Rybrevant and Leclaza wasn’t the only good news for Johnson & Johnson. Its third-quarter earnings report also came out earlier today and should have delivered a more upbeat outlook. Not only did Johnson & Johnson post beats for earnings and revenue, but they also hiked their full-year guidance thanks to a rise in both pharmaceutical and medical device sales.
Is Johnson & Johnson a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on JNJ stock based on five Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average JNJ price target of $177.45 per share implies 14.28% upside potential.
