1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Investors: 80
Johnson & Johnson (NYSE:JNJ) is a multinational healthcare company that specializes in breast reconstruction and aesthetics through its subsidiary, MENTOR. The company provides tissue expanders, breast implants, and other surgical supplies for use in reconstructive and cosmetic breast surgery procedures. The Breast Implant Simulator app from Mentor simulates implant sizes by letting users upload images or utilize real-time video. It employs augmented reality to show the results of breast augmentation. In addition, it facilitates the sharing of findings for feedback, links users with nearby surgeons, and offers instructional information.
Stifel raised its price target on Johnson & Johnson (NYSE:JNJ) $155 to $160 and maintained a Hold rating. This comes after a successful year for J&J’s Innovative Medicine segment, which generated 8.8% annual growth and accounted for 65.5% of revenues. With 34.5% of revenues, the MedTech category grew by 4.4%. In the second quarter of 2024, management offered a positive view for the quicker expansion of the MedTech business, even in the face of competitive challenges and market dynamics in China.
Johnson & Johnson (NYSE:JNJ) reported Q2 revenues of $22.4 billion, up 4.31% from the same quarter the previous year, and adjusted profits per share of $2.82. These results led to an increase in the company’s projected 2024 sales from $89.2 billion to $89.6 billion.
It’s also important to note that Johnson & Johnson raised their operating sales projection, which was 5.8% before, to 6.4% at the midpoint of the guidance range as a result of the purchase of Shockwave Medical, a medical technology firm.
The company recently paid $1.25 billion to purchase Yellow Jersey, gaining the rights to NM26. Johnson & Johnson’s (NYSE:JNJ) CARVYKTI also showed advantages for survival in Phase 3 multiple myeloma research.
However, a $6.5 billion talcum powder settlement and decreased future revenue growth from Stelara are just two of the issues Johnson & Johnson has to cope with. Analysts expect just a 3% revenue gain in 2025. Despite these obstacles, Johnson & Johnson (NYSE:JNJ) has a proven track record of creating blockbuster medications, which shows promise for continued expansion.
In the first quarter of 2024, 80 hedge funds out of 920 reported holding an ownership stake. Thomas Bailard’s Bailard Inc is the largest stakeholder in the company, with 140,328 shares worth $20.51 million.
While we acknowledge the potential of Johnson & Johnson (NYSE:JNJ) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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