Johnson & Johnson Stock Under Pressure After Tylenol Controversy and Texas Lawsuit

The stock remains under pressure following remarks by U.S. President Donald Trump, who claimed that Tylenol — a drug marketed by Johnson & Johnson subsidiary Kenvue Inc. — is dangerous and may cause autism in children. Despite documentation and patents from the U.S. Food and Drug Administration (FDA) confirming the product’s safety, demand has fallen sharply, and Kenvue Inc. shares have lost more than 20% of their value since Trump’s statement. Moreover, Texas Attorney General Ken Paxton has filed a lawsuit against the company, accusing it of deliberately concealing an alleged link between Tylenol and autism or ADHD, which continues to put pressure on the stock.

In its third-quarter report, Johnson & Johnson posted a slight increase in revenue to $23.99 billion from $23.74 billion in the previous quarter, exceeding $22.50 billion for the same period last year. Earnings per share (EPS) reached $2.80 versus $2.77 and $2.42 previously.

The company’s most recent dividend payment was made on September 9, amounting to $1.30 per share — a quarterly yield of 2.91%, above the sector average of 2.64%. The next dividend is scheduled for December 9, with the same payout of $1.30, representing a forward yield of approximately 2.78%.

Support and Resistance Levels

On the daily chart, the stock is correcting, approaching the lower boundary of the ascending channel with dynamic limits between 200.00 and 182.00.

Technical indicators are weakening the buy signal: the fast EMAs of the Alligator indicator are slightly above the signal line, while the AO histogram forms corrective bars.

Support levels: 182.80, 173.80.

Resistance levels: 189.20, 198.00.

Johnson & Johnson Stock Forecast and Trading Scenarios

If the decline continues and the price consolidates below 182.80, short positions may be opened with a target of 173.80 and a stop-loss at 186.00. Timeframe: 7 days or more.

If growth resumes and the price consolidates above 189.20, long positions become relevant with a target of 198.00 and a stop-loss at 186.00.