A fine, long-term story but shares were hammered today when the CEO announced aggressive numbers that the street doubted. Nearly all healthcare stocks sold off, too.
So many things going for it. New CEO, really trying to put more emphasis on the medical business. One of 2 companies in the world with a AAA credit rating. Resurgence in medical procedures. A play on demographics, Covid rebound, and higher margin businesses. Yield is 2.54%. (Analysts’ price target is $182.15)
(A Top Pick Oct 20/22, Up 7.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with JNJ is progressing well. To remain disciplined, we recommend trailing up the stop to $166 at this time.
Stockchase Research Editor: Michael O'Reilly JNJ is a defensive holding that is trading below peer valuation (23x earnings vs 36x for peers). The company is preparing to spin off its consumer division in favour of more investment into its pharmaceutical and medical device divisions. It is reportedly making progress on a ground breaking ulcerative colitis treatment. We recommend placing a stop at $150, looking to achieve $190 -- upside over 15%. Yield 2.7% (Analysts’ price target is $187.82)
In process of spinning off consumer products, could lead to value accretion. At lower end of 52-week range, growth has slowed down from historic levels and this gives him pause. Middle valuation among older line pharma. "Blue chip" of pharma industry. He's OK with it, but his pick for portfolios is ELV.
Continue to like the business.
Spinoff of consumer business is a good move.
Established business with good prospects.
Is a good defensive name(high dividend) for long term investors.
Will continue to hold.
Healthcare is defensive because you have constant demand for these products and services. Investors should have exposure in this uncertain economy. Her pick here is JNJ, given its strong balance sheet. They offer pharmaceuticals, medical devices and consumer products, so are diversified. Aging demographics will fuel demand.
(A Top Pick Sep 16/21, Up 3%) A solid return, considering the year we had. 60 years of consecutive dividend increases. Look at the spinout that's coming. Growth should accelerate. Long term story, not a trade story.
Great company with limited downside, but more possible upside because of its pending break-up. JNJ will get into regular generic drugs which offers growth.
She likes healthcare for being a defensive growth sector. JNJ's balance sheet is very strong, so lots of money to buy companies and grow. They spend a lot on R&D. 70% of revenues come from products that rank #1 or 2. 25% of revenues are from products launched within 5 years. Boasts powerful brands across all segments. Their pharma division is doing well, comprising 55% of company revenues. Drugs coming off-patent can be replaced by 14 drugs totaling a potential $5 billion in sales. They pay a 2.7% dividend they has been increasing for 60 straight years. (Analysts’ price target is $186.88)
Giant in pharma. Also medical and consumer. Likes pharma, as it's large and has scale. Patents are more insulated from cliffs than its peers. Well staggered expiry dates, diversified components. Spinoff of consumer division should unlock value. Outperformed S&P 500 in 5/6 of the last bear markets. Undemanding 17x earnings. Yield is 2.66%. (Analysts’ price target is $188.56)
It reports Tuesday a transitional quarter. JNJ is breaking into a slower-growth consumer products business, and a higher-growth pharma and medical device division. He expects good numbers even in the interim now.
Healthcare is defensive name in current market.
Upcoming spinoffs planned of business units will change profile of company.
Long history of rising dividends and solid financial metrics.
Is a good company to hold for the long term.
Current share price is attractive.
Johnson & Johnson (JNJ) Frequently Asked Questions
What is Johnson & Johnson stock symbol?
Johnson & Johnson is a American stock, trading under the symbol JNJ (previously JNJ-N on Stockchase) on the New York Stock Exchange (JNJ). It is usually referred to as NYSE:JNJ or JNJ