Why J&J, Southwest, and WBD Stocks Are On Sale
Johnson & Johnson (JNJ) erased a rally that started in February. Shares lost 7.59% on Tuesday after a federal judge rejected the firm’s third bankruptcy plan filing.
J&J wanted its subsidiary, Red River Talc, to declare bankruptcy. After that, it would fund the firm with around $9 billion. 83% of the claimants supported the proposal.
JNJ shares closed at $153.25. Its shares pay a 3.28% yield (on $5.02 a share).
In the U.S. airline industry, Southwest Airlines (LUV) dropped by 5.93% on Tuesday. Besides a bearish “double top” pattern at around $36, Canada’s boycott of travel to the nation is hurting the sector. American Airlines (AAL) closed near $10, levels not seen since last August 2024. Analysts at Jefferies are bearish on the airline sector. They are expecting ongoing consumer sentiment headwinds to hurt airline ticket sales.
Investors may bet on Delta (DAL), and Air Canada (OTC: ACDVF) trading lower.
Warner Bros Discovery (WBD) fell by nearly 5% to close at $10.21. The firm added Anton Levy to the company’s board. The board’s chair, Samuel A. Di Piazza Jr., said that his addition is consistent with the company’s commitment. The firm is enhancing the board with industry experts who have a record of creating value.
Investors may consider Disney (DIS) stock, too. Its valuation is at attractive levels. Netflix (NFLX) trades in a range and is also worth considering.
