Opinions
Dr. Richard Evans
Johnson & Johnson
JNJ-N
BUY
Jan 25, 2017
Stock price when the opinion was issued
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Premium contentIt reports Tuesday when we should get a legal update about those suing JNJ for cancer allegedly being in their talcum powder. It's been stuck in a range forever, though not in a perpetual downturn like other pharma. This could turn around on any big news on any new drug.
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High in 2022, series of lower highs and lower lows since then. Only positive is that on the most recent pullback it pulled back to a higher low. If you own it as one position among many, you probably won't lose a bunch of $$. Doesn't see it being a leading stock in the near term.
Lean into companies that are economically sensitive with pricing power; if their costs go up tomorrow, they can raise prices the next day.
Tough one. Spun out KVUE, which is in a nice space, but the stock's done nothing. JNJ is now more drugs and medical devices, and its stock's done nothing either. Drug companies are difficult to own, really have to do your homework.
He doesn't want to recommend selling. Drug pipeline sounds good. Good earnings release, and has a bit of earnings momentum behind it. So might not be the time to sell. Yield is ~3%.
A very well-managed company with a very solid footing. Valuation is reasonable and certainly belongs in a portfolio. It is more of a stabilizer rather than a driver of volatility. In the last couple of days, there has been some concern when guidance came in the little bit lower. He wouldn’t be surprised to see them make some acquisitions in 2017. 2.9% dividend yield.