Keep An Eye On JNJ Today


Yesterday I wrote about Procter & Gamble (PG) – the $400 billion consumer staples behemoth that belongs in your portfolio. This morning I’m going to write about its health care equivalent – $475 billion Johnson & Johnson (JNJ) – which reports 1Q22 earnings in a couple hours (3:45am PST).

JNJ is best known for its popular health care staples like Tylenol, Band Aids and Neosporin. However, its Consumer Health segment only made up ~15% of its sales in 2021. Pharmaceuticals and Medical Devices are much bigger. Nevertheless, JNJ is probably the most trusted brand in health care and I think it belongs in your portfolio as well.

JNJ closed Monday at $177.66 – not far from its all time highs – but it’s still not expensive at less than 17x its 2022 adjusted EPS guidance. Like PG, JNJ has pricing power and is defensive – two characteristics that should serve it well in the stagflationary environment I foresee. Keep an eye on JNJ today for an opportunity to pick up shares.


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