10 Best Defensive Stocks According to Reddit

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 80

Johnson & Johnson (NYSE:JNJ) is a leading pharmaceutical company that ranks fourth on our list of the best defensive stocks according to Reddit. Johnson & Johnson’s (NYSE:JNJ) top-selling drugs include Stelaera, Darzalex, Imbruvica, Tremfya, Erleada, Uptravi, Invega, Symtuza, and Opsumit.

In the second quarter of 2024, the company reported sales of $22.4 billion, up by 4.3%. Xarelto, Stelara, and Imbruvica accounted for 19% of the company’s revenue in the second quarter of 2024. Johnson & Johnson (NYSE:JNJ) also saw success with regulatory approvals for some medications such as RYBREVANT and TREMFYA. Johnson & Johnson (NYSE:JNJ) is dominant in the oncology sector, with sales growing by 16% to reach $5.09 billion. This was attributable to the massive success of its cancer drug, Darzalex.

Johnson & Johnson (NYSE:JNJ) is one of the best defensive stocks to buy and we say that because of its growth trajectory over the years across all its departments. The company is expected to deliver over 20 novel therapies and over 50 product expansions by 2030. All its segments are expected to grow at a compound annual growth rate between 5% to 7% between 2025 and 2030. Over 10 assets in its Innovative Medicine segment hold the potential to bring $5 billion in projected operational sales.

Analysts are bullish on JNJ and their 12-month median price target of $170 points to a 3% upside from current levels. Overall, JNJ was held by 80 hedge funds at the close of Q2 2024 with total stakes amounting to $4.76 billion. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $1.02 billion.

JNJ is currently trading at 16.44 times its forward P/E, a discount of 23% to its sector. Analysts polled by Yahoo Finance expect JNJ to grow its earnings by 1.1% this year.