Opinions
Mike Vinokur, CFA, CMT, and CFP
Johnson & Johnson
JNJ-N
PAST TOP PICK
Jan 07, 2025
Stock price when the opinion was issued
You might be interested:
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.
Premium contentAt Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for almost 140 years, we have aimed to keep people well at every age and every stage of life. Today we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. Social media mentions are up 18% in the past 24h.
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%.
You can own, collect the dividend and in coming years will likely be higher. This is mixed in with current worries over healthcare stocks, but this will pass. JNJ has stable earnings and cash flow. Happy to hold on.