Johnson & Johnson (NYSE: JNJ) has been a core position in my portfolio and is likely a core position in many other portfolios. Even for passive investors, JNJ is heavily weighted in ETFs such as the SPDR S&P 500 (NYSEARCA:SPY) (1.64%, top five holding) and several dividend ETFs usually ranging 3-4% in weighting. With the recent dip in price, I decided add to my position. I had a small limit order filled at $142 and may add a few more shares on further price weakness. In this article, I provide my perspective on the recent financial results, investor concerns, and my reasons for staying long while adding some shares on this dip.
Recent Stock Price
Johnson & Johnson stock declined by over 4%, and closed at $141.85. It was a significant one day selloff for a stock that is often beloved by the market. In addition, the company released earnings which beat analyst consensus estimates for EPS and revenue. For the most recent decline, from a technical perspective, some investors are keenly looking at $141 as an area of support.
