1 Dividend Stalwart to Buy, 1 to Sell Post Earnings

• Johnson & Johnson faces investor concerns due to weaker revenue forecasts and ongoing legal challenges.
• Procter & Gamble’s stable guidance and growth projections have bolstered investor confidence.
• Market reactions underscore the differing outlooks for these dividend-paying industry giants.
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The earnings season is heating up, and yesterday, all eyes turned to two industry heavyweights – Johnson & Johnson (NYSE:) (NYSE:) and (NYSE:).

Both companies outpaced analyst expectations, delivering stronger-than-anticipated revenue and earnings per share.

Yet, the market reaction told two very different stories. While P&G saw signs of optimism, J&J faced renewed skepticism. What’s driving this divergence, and what does it mean for investors moving forward?

Solid Results, Contrasting Reactions

Johnson & Johnson and Procter & Gamble’s quarterly performances underscored their resilience in a challenging market. But a closer look reveals key differences shaping investor sentiment.

For J&J, weaker 2025 revenue forecasts and looming challenges—such as the patent expiration for its blockbuster drug Stelara and a February showdown in the ongoing talc litigation—cast a shadow over its outlook.

In contrast, P&G maintained steady guidance for 2024, projecting 2-4% sales growth and earnings per share between $6.91 and $7.05.

Investors rewarded P&G’s stability with optimism, while J&J’s less favorable projections sparked a selloff at the open. Despite the divergence, both remain stalwart dividend-paying companies, appealing to long-term, defensive portfolios.

1. Johnson & Johnson: Challenges Ahead

For J&J, the session’s negative reaction wasn’t surprising. The company’s updated 2025 revenue forecast of $89.2-$90 billion fell short of the $91.1 billion consensus, highlighting growth concerns.

Source: InvestingPro

Compounding this, the loss of exclusivity for Stelara opens the door for intensified competition, while the talc litigation saga continues to weigh on sentiment.

Source: InvestingPro

On the technical front, J&J’s shares now face a critical test. Closing the supply gap at $147.75 is the first hurdle for buyers to regain control.

The bigger challenge lies at $151—where significant resistance could cap any short-term recovery. If bearish momentum prevails, a drop toward $141 remains a strong possibility.

2. Procter & Gamble: Strength in Stability

Meanwhile, P&G’s results sparked optimism among bulls. Despite grappling with high supply chain costs, the company’s solid growth projections for both sales and earnings have kept sentiment upbeat.

On the technical side, the $158 support level has proven resilient, acting as a strong buffer against downside risks.

For P&G bulls eyeing a return to November highs, the next key challenge is breaking through resistance at $170 per share. A failure to hold $158, however, would signal a more bearish shift in momentum.

Final Thoughts

J&J and P&G’s earnings highlight the contrasting fortunes of two dividend stalwarts. While J&J grapples with headwinds that cloud its long-term outlook, P&G’s steady performance and optimistic forecasts keep it on solid footing.

For investors, these results underline the importance of a balanced approach—watching not only near-term results but also the broader narrative shaping each company’s trajectory.

As the ex-dividend date for P&G approaches, opportunities may arise for investors seeking defensive plays. But for J&J, the road to recovery may hinge on clearing legal hurdles and restoring confidence in its growth potential.

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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.