Once consumer division gets spun out, will look more like MRK as a pure pharma play. He owns MRK, and it's performed defensively well, with a strong portfolio. JNJ is more diversified, but MRK is a better company.
They reported a great quarter, especially their medical devices division, up 11%--neuro-vascular devices, artificial knees and contact lenses being sources of strength. But the focus remains on the lawsuit over their talcum powder allegedly causing cancer. Its PE has never been this cheap. JNJ will recover in 6 months.
Hasn't panned out as envisioned, but still believes in the business. Wise decision to spin off consumer products division, trading separately. JNJ will be left as a more pure play on devices and pharma. Defensive names have been funding market trades, so stock's at a discount at 14.5x earnings. Long history of growing earnings and dividends. Good time to add.
He's worried, because that division has done well. But if this talcum powers lawsuit gets behind them, JNJ will hit $180 instantly.
After we get this negative talcum powder lawsuit and sentiment behind them, we can focus on pharmas and medical tech as they spin out the consumer business. They need to settle and get through May.
A core holding. Great with a AAA credit rating. JNJ is now settling legal claims that its baby powder contained traces of cancer-causing asbestos. JNJ split into consumer goods and pharma. The case kept a lid on JNJ shares, which he saw as a buying opportunity. He kept buying. However, an appeals court blocked that spin-off, and he lost big. However, he held onto JNJ because he believed in it. Last night, JNJ announced a settlement and lifted this huge threat.
Pfizer vs. JNJ
That just bought a company, and he immediately thought of the 2008 Wyeth acquisition (at the top of that cycle), and right after shares plunged. Pfizer's timing has not improved. Better to buy JNJ which is doing spin-offs that should benefit the company. JNJ is well-managed and regularly raises its dividend.
It's coming down nicely. No volatility. Has recommended this before. Drugs are consumer staples. He models $184, 20% upside. They will spin off their vaccine division, which will be beneficial.
Stock is down 12% this year. They will spin off their consumer business. It pays a 3% dividend. The lawsuit is an overhang (https://www.forbes.com/sites/korihale/2023/02/07/appeals-court-clears-the-way-for-38000-johnson--johnson-baby-powder-lawsuits/?sh=45077c8ed7fc). But the valuation is cheap, good balance sheet, and catalysts lie ahead. Likes it.
Similar but different. He owns JNJ, expects a resurgence of spending in the medical area. Will also benefit from splitting up its businesses, and he expects increased value from this move.
Healthcare name that is very strong.
Will continue to own shares in the company.
Consumer product market very strong.
High end brands with excellent prospects.
Pharmacy business strong.
Has owned this forever and it's one of his top 10 stocks this year. He doesn't trade it. Has a credit rating higher than the US government and pays a good dividend.
Johnson & Johnson is a American stock, trading under the symbol JNJ-N on the New York Stock Exchange (JNJ). It is usually referred to as NYSE:JNJ or JNJ-N
In the last year, 24 stock analysts published opinions about JNJ-N. 21 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Johnson & Johnson.
Johnson & Johnson was recommended as a Top Pick by on . Read the latest stock experts ratings for Johnson & Johnson.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
24 stock analysts on Stockchase covered Johnson & Johnson In the last year. It is a trending stock that is worth watching.
On 2023-06-08, Johnson & Johnson (JNJ-N) stock closed at a price of $159.61.
World's largest and more diverse healthcare company.
Excellent for long term investors.
Current share price a good time to invest.
Owns shares in company.
Excellent business model with strong balance sheet.
Steady revenue that is recurring.