IHE - Johnson & Johnson: Vital Signs Decent A Compelling Value Case

2024-05-23 12:27:13 ET

Summary

• The Health Care sector has been stagnant while other areas of the stock market reach record highs, leaving some value opportunities in drugmakers and pharma stocks.
• I have a buy rating on Johnson & Johnson (JNJ) given its stable earnings growth and lofty yield.
• JNJ's diversified portfolio and pipeline provide stability, despite some weaknesses in certain areas.
• I highlight key price points to monitor on the chart ahead of a busy corporate presentation schedule.

The Health Care sector continues to meander, while more risk-on areas of the stock market hit fresh record highs. In the last three months, the Health Care Select Sector SPDR ETF ( XLV ) is among three S&P 500 sector ETFs merely skirting the flat line. A recent resurgence in tech and the momentum trade, including new highs in the glamour drugmaker Eli Lilly ( LLY ), has left many high-dividend blue-chip US large-caps in the dust. ...

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