Can Johnson & Johnson Break Out In 2020?

Johnson & Johnson (NYSE: JNJ) enjoyed an excellent run from 2010 to 2017, climbing from $63 to $140 before entering a more volatile period over the past two years. Since then, the stock has bounced between $120 and $147, and it sits closer to the top of that range as 2019 comes to an end. Investors who rode that wave have probably felt frustrated with the ups and downs in recent years, and they're hoping the stock will fare better next year.

The branded company's pharmaceutical segment generates 53% of total company revenue and 67% of its operating profit. This portion of the business currently markets dozens of drugs, but Stelara, Remicade, Imbruvica, Zytiga, Invega, and Darzalex are the current best sellers. Potential regulatory changes and competition threaten the segment, and heavy investments in research and development or acquisitions are required to maintain a robust pipeline to replace drugs with expiring patents. Previous top-seller Remicade is experiencing declining sales due to competition, and pipeline products from AbbVie (NYSE: ABBV) could threaten Johnson & Johnson's immunology group with pending U.S. Food and Drug Administration approvals.

Image Source: Johnson & Johnson

Source Fool.com