Johnson & Johnson(Nyse: jnj) He is one of the world’s greatest and most prominent health care leaders. If the investment in the company collapsed to size, the shares would be a brain -free purchase. However, Johnson & Johnson have encountered legal and regulatory winds in recent years, giving investors a break. Furthermore, the growth of revenue was generally impressive, nor does it have an effect on the Johnson & Johnson shares market. Is the pharmaceutical giant still worth investing?
Some could describe the job of Johnson and Johnson as boring, but sometimes it’s not that bad. The sale of pharmaceutical products is stable and reliable business even when the economy falls, because patients never stop the necessary potentially saving drugs.
Johnson & Johnson Portfelj contains more than 10 Blockbuster medication and covers several therapeutic areas, from infectious diseases to oncology.
The health giant is also a leading manufacturer of medical devices, which adds diversification to his business. The financial results of Johnson and Johnson are generally stable and consistent. Check out the revenue chart and net revenue below.
The company’s balance sheet is Rock Solid and earned AAA credit rating of S&P, the highest available. Although he did not have such an impressive growth of the upper line in recent years, this could change in the long run, for at least two reasons.
First, Johnson & Johnson split from their business of consumers in 2023. This unit has become a withdrawal of its revenue growth, and by removing itself, the company will be able to invest more into its basic pharmaceutical and medical products, which will lead to stronger sales growth. Johnson & Johnson’s separation effect will become clearer as time goes on.
Second, Johnson & Johnson have several growth options. One of them is in the robot industry of surgery. Johnson & Johnson develops Ottave system to compete in this market in which it is dominated by Intuitive surgical. Although Ottava has not yet been approved in the United States, it will probably be in the end, and then it will provide a key source of constant revenue of the company. So, I am optimistic financial results of Johnson & Johnson will remain solid.
Health care leader is also a great stock of revenue. Johnson & Johnson increased the payment of dividends 62 consecutive years, making him king of dividends. Between the strong fundamental business of Johnson and Johnson and the excellent dividend program, the section can be a solid choice for long -term investors seeking income.
Hopeful winds include thousands of lawsuits related to talk and new law in the United States, which gives Medicare the power to negotiate the prices of medication. The first round of negotiations will aim at three companies.
As for the first issue, Johnson & Johnson, through the branch, proposes a settlement in the amount of $ 8 billion, which currently supports about 83% of eligible applicants and will resolve 99.75% of talc lawsuits against the company.
Although it is not a finished job, things could move in that direction. Of course, those $ 8 billion will come out of Johnson & Johnson’s pockets – but for a company that makes more than $ 80 billion in revenue every year, this is not the end of the world.
As for the second problem, Johnson & Johnson has survived many regulatory changes in recent decades. I am convinced that the company has flexibility and to move in this one. The Johnson & Johnson pipeline contains almost 100 programs that are ongoing, and even if what is paid for some medicines is reduced, there are others who make up for it.
With more investment in pharmaceutical products after the separation of their consumer health segment, Johnson and Johnson’s innovative capabilities will improve.
Johnson & Johnson -The winds are undoubtedly worthy of monitoring. But even with these obstacles, the company’s stock is a great choice for some investors. It’s not for those looking for high -growth companies, but it’s a reliable, blue chip supplies that dividend investors will love.
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Prosper Junior Bakiny He has positions in intuitive surgical and Johnson & Johnson. Motley Fool has positions and recommends intuitive surgical. Motley Fool recommends Johnson & Johnson. Motley Fool has disclosure rules.
