1 Reason Why Shares of Johnson & Johnson Are Surging This Month

So far this month, stocks overall have experienced sideways price action. That hasn't been the case for Johnson & Johnson (NYSE: JNJ). Share prices for this healthcare giant have been surging, after a sluggish start to the month.

What's been driving this outsized performance? Chalk it up to a spate of promising news developments.

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Johnson & Johnson rallies on label expansion, acquisition news

Investors reacted positively to Johnson & Johnson's third-quarter 2025 earnings release in October. It included the company's slight earnings beat and improvements to guidance, along with the healthcare giant's plans to divest its slower-growing orthopedics business in a stock spinoff.

In late October, however, bullishness for the stock simmered down, with the share price falling back to the mid-$180s by the start of this month. Not too long after that, however, a series of positive company-specific developments led to renewed bullish sentiment.

So far this month, the company received U.S. Food and Drug Administration (FDA) approval for the label expansion for several of its drug products, including antidepressant Caplyta and myeloma treatment Darzalex Faspro.

Johnson & Johnson also announced a major acquisition, with its plans to buy privately held biotech company Halda Therapeutics, developers of prostate cancer treatment HLD-0915, in a $3.05 billion all-cash transaction.

Should you buy Johnson & Johnson stock?

It's unclear whether this stock's hot streak will carry on into December and beyond. However, with this blue-chip stock, consider it best to approach with a long time horizon in focus, not near-term trading trends.

Admittedly, over the past decade, Johnson & Johnson has underperformed compared to major indices like the S&P 500. However, this could change in the coming decade, given the company's pivot toward faster-growing segments of healthcare and pharmaceuticals.

Alongside this, the company's strong dividend growth track record could provide a further boost to long-term returns. Johnson & Johnson has raised its dividend for 63 years in a row, with its latest dividend increase coming in at 4.8%. At current prices, shares have a forward dividend yield of around 2.5%.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.