Johnson & Johnson
With a market cap of over $389 billion, Johnson & Johnson is one of the world's most valuable companies. It is one of only two U.S.-based companies that has a prime credit rating of AAA. The other is Microsoft
Here's what analysts will be focusing on, and how the stock currently maps against Wall Street estimates.
Johnson & Johnson Investment Thesis
Johnson & Johnson stands as a historically reliable investment option. Its commitment to shareholder value through dividends and rock-solid balance sheet make it a staple in diverse portfolios.
In 2023, the company split-off of its Consumer Health segment, resulting in the creation of Kenvue Inc
Johnson & Johnson's strength lies in its well-diversified Innovative Medicine and MedTech segments. Innovative Medicine focuses on immunology (Stelara and Tremfya) and oncology drugs (Darzalex), while MedTech specializes in surgical devices and orthopaedics.
The acquisition of Abiomed, Inc. for $16.6 billion at the end of 2022 enhanced the company's position in coronary artery disease and heart failure treatment. Johnson & Johnson has also announced its $2 billion acquisition of Ambrx Biopharma Inc
The company has been paying and growing dividends for 61 years. Despite the Kenvue split-off and ongoing talc litigation, the safety of JNJ's dividend appears to remain intact.
Q4 Analyst Focus & Consensus Ratings
Q4 Analysts' Focus: Analysts will be assessing Johnson & Johnson's dividend safety pursuant to the Kenvue split-off. The impact of talc lawsuit settlement and the acquisition of Ambrx Biopharma, would also be in focus.
Ratings & Consensus Estimates: The consensus analyst rating on Johnson & Johnson stock currently stands at Neutral, and the consensus price target is $175.75 a share.
JNJ Price Action: On Friday, shares of Johnson & Johnson ended the trading day 0.29% higher, closing at $161.68.