Why Johnson & Johnson (JNJ) Surged on Monday

We recently compiled a list of the 10 Firms Post Impressive Gains on Monday. In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against the other stocks.

Wall Street ended the first trading day of the week on a mixed note, with the Dow Jones the sole gainer, up 0.65 percent.

The S&P 500 and Nasdaq both fell by a whopping 1.46 percent and 3.07 percent, respectively, over fears that China is overtaking the US in innovations in the Artificial Intelligence industry, dampening confidence at a time when the world’s largest economy is bolstering investments in the sector.

Meanwhile, ten companies under mixed sectors ended the day stronger. In this article, we will take a look at which of the 10 companies posted impressive gains during a broader market pessimism and look at the reasons behind their rally.

Monday’s top advancers only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A smiling baby with an array of baby care products in the foreground.

Johnson & Johnson (NYSE:JNJ)

Pharmaceutical giant Johnson & Johnson grew its share prices by 4.14 percent to close at $152.89 apiece as investors took heart from an investment bank’s rating upgrade of the company.

On Monday, Barclays analyst Matt Miksic boosted his price target for Johnson & Johnson to $166 from $159 previously on the back of a strong fourth-quarter earnings performance.

Particularly, its oncology segment showed strength that offset weaker areas namely electrophysiology and surgery.

In other news, Johnson & Johnson is currently on a shopping spree of other pharmaceutical firms, with the latest being Intra-Cellular Therapies which it plans to acquire for $14.6 billion.

The transaction would mark the latter’s biggest deal in more than two years, bolstering its presence in the brain disease treatments market.

Overall JNJ ranks 10th on our list of Monday’s top advancers. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.