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Johnson & Johnson (JNJ) has a bullish Chaikin Power Gauge stock rating and is just the type of large cap stock that will appeal to international investors like the Japanese national pension fund that announced on Friday they were increasing their allocation to international stocks from 12% to 25%. JNJ is a huge healthcare conglomerate with consumer, medical devices and pharmaceutical divisions. The company has benefited recently from cost cutting measures and is expected to show an 8% increase in earnings per share this year with further gains in 2015 of 5-6%. The stock yields 2.62% and has consistently raised its dividend in good years and bad.
Last week JNJ announced the development of a two-step Ebola vaccine that shows promise in monkeys and will be ready for human testing in 2015. The rumor mill suggested that they could have 400,000 doses ready by the spring of 2015 if accelerated testing is successful.
The company recently reported strong 3rd quarter sales and earnings and raised guidance slightly to $5.96 for 2014. The better revenue performance put to rest some analysts’ fears and caused a renewed interest in JNJ’s stock. This past week’s broad market advance saw Johnson and Johnson trade back toward its 52 week high.
With over $75 billion in revenues and a market cap of $302 billion, JNJ is the world’s largest diversified healthcare company. Johnson & Johnson has a strong research pharmaceutical pipeline with a number of category leading drugs already in the market to treat immune diseases and psoriasis.
With their recent acquisition of Pfizer’s (PFE) global consumer personal care and over-the-counter drug business, JNJ has further enhanced their strong consumer brand in the United States. JNJ’s 2011 acquisition of Synthes for $21 billion is starting to bear fruit. The combined DePuy Synthes orthopedic products division is realizing cost savings and is the world’s leading manufacturer of joint reconstruction, trauma and spinal related orthopedic products.
Bullish Chaikin Power Gauge rating for JNJ
JNJ has a Bullish Chaikin Power Gauge stock rating. The Financial, Earnings and Technical components of the rating are all Bullish. With consistent earnings growth, a long history of dividend increases and the strong Health Care Sector providing tailwinds, Johnson & Johnson is a conservative purchase at current levels.
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Chaikin Analytics stock research
Chaikin Power Gauge stock rating model
NASDAQ Chaikin Power Stock Indexes
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
