NYSE:JNJ

Johnson & Johnson (JNJ)

248.82
-4.22 (1.67%)
as of Jul 20, 2026, 8:00:00 pm Market Open.
697 watching
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Investor Insights
star iconJul 20, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

Johnson & Johnson (JNJ) has faced challenges in its cardio business, but experts are generally optimistic about its future, especially following a recent earnings report. The company is transitioning into a pharmaceutical pure-play after spinning off its orthopedics division, which has helped bolster its position in higher-margin sectors such as medical devices and pharmaceuticals. Many analysts believe that despite past legal issues related to talcum powder lawsuits, these concerns have diminished and are unlikely to significantly impact the stock's future performance. With a strong pipeline of drugs, particularly in oncology, JNJ's stock is seen as a promising investment, especially for dividend growth. Overall, the sentiment indicates that buyers may want to capitalize on potential weakness in the stock.

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Consensus
Buy
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Valuation
Fair Value
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Similar
P&GA,PG
BUY
JNJ's vaccine appears to be the least effective against the new Covid strains. And yet, JNJ benefits from Washington expected to decree booster shots for Covid, so the drug space is benefiting as a whole.
PARTIAL BUY
It's not a high-grower. Abbot offers stronger growth, but JNJ offers a very defensive portfolio and a reasonable 18x PE. Also pays a good dividend of around 5%. JNJ is defensive in good and bad times. Over time, they raise their dividend and buyback some shares.
BUY

JNJ vs. PG Valuation of 16-17x earnings is cheaper than PG. A healthcare company: medical devices, healthcare, pharma. PG is just consumer products, trading at 23x earnings. More opportunity in JNJ, with a caveat on the talc lawsuits. Medical device side should do well post-Covid. Dividends similar in the 2.5% range.

BUY ON WEAKNESS
It has been a great long term stock. He would own it if it were a little cheaper. They are in a good sector. The entry point is too expensive, otherwise he would like to own it.
BUY

Doesn't own, but likes it. Steady, strong technical chart on the upswing. 17x earnings for a 9% growth rate. Diversified products, strong management. Great for cashflow and long-term growth. He prefers Pfizer and ABBV. See his Top Picks today. Yield is 2.6%.

BUY
Great company because of its diversified businesses of pharma, medical devices, and personal care products. Great dividend yield, increased for 54 years in a row. Great free cashflow growth.
BUY
It is a stable holding, which has in fact been a headwind. It will probably ebb and flow. There are some company specific catalysts there as well, though.
BUY
It's a teflon stock with a good drug pipeline. This will go up no matter what.
HOLD

JNJ vs. ABT Healthcare is in a more defensive space, moving up during the pandemic. Likes both. JNJ has a fairly nice dividend at 2.5%. 18x forward earnings for 8% growth. Performing decently, but underperforming the S&P. ABT is more in medical devices. Marginally underperforming since last March. 22x earnings with a higher growth rate of 14%. Bit more torque with ABT, and they're also in the Covid detection space. If he had to choose, it would be ABT.

BUY

Opportunity for Pfizer and J&J are solid. You give up some appreciation when you select a stock with higher yield. However, total return is the most important. There is more diversification with JNJ with medical supplies. Pfizer's partnership with BioNtech is positive. There is renewed chatter about drug price controls. Both offer good prospective.

PAST TOP PICK
(A Top Pick May 11/20, Up 16%) Great dividend yield, and keeps increasing. Trades at 18x earnings. Likes its 3 divisions of pharma, medical devices, and personal care. This smooths out the volatility and revenue. Cashflow machine.
BUY
They report Tuesday. The CDC, he feels, has unfairly punished JNJ over its Covid vaccine. He expects JNJ to release a strong quarter and pipeline of drugs.
DON'T BUY

This morning the news said that distribution has been halted in the US, so the stock is declining today. Like Pfzier, JNJ is seeing a one-time bump because of their vaccine. JNJ is struggling in their consumer business as consumers move to generic drugs, not branded. Also, litigation remains a cloud, referring to asbestos in its Baby Powder. There are other opportunities in healthcare, like Anthem, the insurer, or retailer CVS, or Abbvie trading at a reasonable PE and offers good growth.

PAST TOP PICK
(A Top Pick Mar 12/20, Up 34%) A great company. Pharma, medical technology and consumer products are its three divisions, so if one lags, the others pick up the slack. Has great cash flow and pays an increasing yield. They came out with a Covid vaccine quickly. Developing drugs is a risk, because it depends on FDA approval, but JNJ operates three divisions to spread overall risk. He likes that, unlike pure pharma which depend on their drug pipeline.
WATCH
Has many brands that are billion dollar platforms. Consistent growth over last 25 years. High quality. Good positioning in consumer healthcare, pharma, and medical devices. On his focus list.
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