10 Best Cancer Stocks to Buy According to Hedge Funds

5. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells a range of products in the healthcare field through its subsidiaries. With a primary focus on products related to human well-being and health, the company operates through two segments: Innovative Medicine and MedTech. The Innovative Medicine segment focuses on various therapeutic areas, including oncology, infectious diseases, immunology, cardiovascular and metabolic diseases, and others. Johnson & Johnson (NYSE:JNJ) is running on solid fundamentals. It has a AAA credit rating, higher than that of the US government. One of the primary reasons behind this position is its low debt level.

Fiscal Q4 2024 showed strong sales of the company’s cancer treatments. Johnson & Johnson (NYSE:JNJ) reported sales of $88.8 billion for fiscal year 2024, reflecting a 4.3% year-over-year growth. These strong results reflect the strength of the company’s high-growth strategy. It has a solid balance sheet and generates enough cash flow through its operations to cover its high-yielding dividend.

Johnson & Johnson (NYSE:JNJ) also announced the $14.6 billion acquisition of neurological drugmaker IntraCellular on January 13. This acquisition will allow the company access to Caplyta, an oral drug for the treatment of bipolar disorder and schizophrenia. This acquisition is part of the company’s various acquisition plans to drive growth in fiscal 2025 and beyond.