NYSE:JNJ
Johnson & Johnson (JNJ)
257.78
-1.58 (0.61%)
as of Oct 21, 2026, 8:00:00 pm Market Closed.
697 watching
Financials 
Technical Analysis 0
PARTIAL BUY
He's surprised--JNJ will spin-off its consumer health as a separate company to leave behind a best-of-breed drug and medical device business. He's a big fan of JNJ. It could take 1.5-2 years for this break-up to play out, so be patient. JNJ has one of the best drug businesses, but it's buried within a larger business while medical devices is growing strong. JNJ trades at 16x 2022 earnings, much lower than its peers. Has a strong balance sheet. Pays a 2.5% dividend yield. Share could rise as more details of the break-out come. Their Covid wasn't doesn't seem effective now.
biotechnologypharmaceutical
BUY
A number of different business units with potential.
Likes Johnson & Johnson as it is a well run company.
Very inexpensive stock with free cash flow yield is ~5% and forward P/E ratio at 16x.
Executive stock compensation is reason why buybacks aren't reducing share count.
Share buybacks are popular because managements can understand own business model better that alternative use of capital.
Chris BlumasOwned
biotechnologypharmaceutical
COMMENT
Owns Johnson & Johnson.
Three divisions which are very strong.
Spinning out personal care division.
Good balance sheet and has increased dividend every year for 50 years.
Elective surgeries increasing post Covid-19.
Believes will continue to be great company.
Bullish on healthcare & pharmaceutical industry.
Paul Harris, CFAOwned
biotechnologypharmaceutical
TOP PICK
They will spin-out their consumer business that will unlock value and probably pay a one-time dividend. This will allow more capital deployed into their pharma and devices businesses, their growth engines. They've paid 58 straight years of dividend increases. (Analysts’ price target is $186.44)
Darren SissonsOwned
biotechnologypharmaceutical
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly We once again reiterate JNJ as a TOP PICK. The global consumer care product and health care manufacturer is well positioned to provide COVID-19 vaccine boosters in light of the Omicron variant development. It pays a decent dividend backed by a payout ratio under 65% of cash flow. Cash reserves are being used to buy back stock and pay down debt. We continue to recommend a stop loss at $147, looking to achieve $191 -- upside potential over 20%. Yield 2.72% (Analysts’ price target is $189.75)
biotechnologypharmaceutical
BUY
They spun off their growing pharma and packaged goods businesses. Shares spiked, but then plunged because of the rotation out solid Dow stocks and into semi stocks. It pays a 2.7% diviednd yield and has a good balance sheet. Trust the CEO and keep buying or don't sell. Their pharma spin-off will be the fastest-growing, largest drug company. Should be an instant market darling. Its valuation has been held back by the consumer product business being spun-off. Trades at only 16x earnings.
biotechnologypharmaceutical
BUY
Why break it up? Their strong pharma business, one of the best around, is separated from the slower-growth consumer goods division; it reminds him of the Abbott Labs break-up into Abbvie which has benefited both companies with strong value creation. It succeeded because of execution. (He owns Abbott and Abbvie.) JNJ's medical devices business accounts for 35% of their sales is growing much better as the pandemic winds down. But their pharma and consumer products division have little to do with each other, and pharma doesn't get enough recognition buried within the company. Investors will be interested in each division, more so than the entire conglomerate. He personally likes their drug division.
biotechnologypharmaceutical
PAST TOP PICK
(A Top Pick Oct 26/20, Up 17%) Still likes it for its three divisions which offsets each other's weakness. It's been raising its dividend for 54 years and trades at a cheap 15x earnings. Great free cash flow growth. Benefitting the medical devices business are elective surgeries which will bounce back into next year. Personal products have been hit in recent years--their talcum powder and opiod lawsuits which have been settled. Generally, it's a great business. He'd buy it here.
Paul Harris, CFAOwned
biotechnologypharmaceutical
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate JNJ as a TOP PICK. The global consumer care product and health care manufacturer is being considered by the FDA for a COVID-19 vaccine booster. It trades at 24x earnings compared to peers at 28x and pays a decent dividend backed by a payout ratio under 55% of cash flow. Cash reserves continue to grow. We would buy this with a stop loss at $147, looking to achieve $191 -- upside potential over 20%. Yield 2.65% (Analysts’ price target is $190.38)
biotechnologypharmaceutical
DON'T BUY
Broadly, pharmaceuticals and healthcare space is not providing a ton of opportunity. Trading at reasonable valuations with 3 divisions. Consumer business is in trouble because more people are going towards generics. Pharma business hasn't seen much tailwind from covid vaccines.
biotechnologypharmaceutical
PAST TOP PICK
(A Top Pick Sep 24/20, Up 18%) Prospects now are better than last year. Vaccine. Consecutive dividend increases. Group lawsuits have been settled. Buy it, put it away, give it to the kids. Attractive at these levels.
Darren SissonsOwned
biotechnologypharmaceutical
TOP PICK
Overhang has been the liabilities of class actions. Settlements have eased this. Big pharma, consumer division, and medical devices provide it with balanced growth. Grown its dividend for 59 consecutive years. Safe and steady anchor for your portfolio. Attractive at these levels. Yield is 2.55%. (Analysts’ price target is $188.56)
Darren SissonsOwned
biotechnologypharmaceutical
PAST TOP PICK
(A Top Pick Sep 15/20, Up 15%) She's owned this for years and continues to buy this diversified healthcare name. Pharmaceuticals account for roughly 50% of revenue. They continually reinvest in their R&D. Many products are #1 in their categories. Boasts a rare triple-A balance sheet and pays a 2.6% dividend that they've increased for 59 years.
Christine PooleOwned
biotechnologypharmaceutical
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