Opinions Kash Pashootan
Johnson & JohnsonJNJWEAK BUYFeb 06, 2018
Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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Owns neither. Of the two, he'd prefer JNJ. Hesitant to put them in the same basket. With spinoff of healthcare, it's now much more into pharmaceuticals (doing very well) and medical devices. Valuation is not that demanding. Executing well.
PG is a consumer products company. Consumer is in some difficulty, and jury's out as to whether we've seen the worst of that dip.
Great year, so valuation has expanded. Shedding lower-growth businesses, focusing on medical devices and pharma. Those 2 areas are higher-margin businesses, so success would mean multiple could continue to expand. Legal overhang diminished.
If you already own it, you can hold it for dividend growth and potential upside. If you don't own, buy via an ETF.
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%.
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.
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Has dropped, along with everything else. You have to consider whether it is cheap at this level. If you look beyond the past few days, you will see that at the beginning of 2017, it was trading at about $100 per share. Now it is over $128, so today’s price is significantly increased over a short time. The business trades at a low multiple at this level (15 to 16 times earnings), near “cheap” levels. JNJ is made up of three businesses: pharma, consumer products and medical devices. The company might be more interesting if it split these into separate businesses. He doesn’t think investors will go wrong by holding this company as is, but this is not a pound-the-table opportunity at this price.