Post Content
We just covered the 15 Safe Stocks to Invest In For Beginners and Johnson & Johnson (NYSE:JNJ) ranks 5th on this list.
Johnson & Johnson (NYSE:JNJ) has transformed from a slow-growth conglomerate into a pure play in innovative medicine and technology. This transformation is a direct result of the company spinning off its consumer health unit in 2023. Without the drag of lower-margin consumer products, the company is now growing revenue at 6%–7% annually. Elite investors view this as buying a growth engine at a value price. Earlier this month, the firm officially raised its full-year guidance to a midpoint of $100.8 billion. Growth is being driven by blockbuster drugs like Darzalex and Tremfya. Even with the patent cliff looming for Stelara, Wall Street is bullish on the 20+ new therapies JNJ plans to launch by 2030.
The acquisition of Shockwave Medical and Abiomed has positioned Johnson & Johnson (NYSE:JNJ) as a leader in high-growth cardiovascular tech, which hedge funds believe will drive margin expansion through 2027. The stock offers a level of financial security that is nearly unmatched in the corporate world. JNJ is one of only two US companies to hold a AAA credit rating, higher than the US government itself. In mid-April, it announced its 64th consecutive annual dividend increase to $1.34 per share. With a current yield of approximately 2.2%–2.3%, it serves as a reliable income floor while investors wait for the stock to re-rate.
While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Israel Englander Stock Portfolio: Top 10 Stock Picks and Billionaire Stan Druckenmiller’s 10 Small and Mid-Cap Stock Picks with Huge Upside Potential.
Disclosure: None. Follow Insider Monkey on Google News.