10 Best Medical Stocks to Buy According to Billionaires

5. Johnson & Johnson (NYSE:JNJ)

Number of Billionaire Investors: 18

Number of Hedge Fund Holders: 98

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. Its Innovative Medicine segment encompasses various therapeutic areas, including infectious diseases, immunology, neuroscience, metabolic and cardiovascular diseases, pulmonary hypertension, and oncology. The MedTech segment includes an elaborate range of medical devices and products used in cardiovascular intervention, orthopedic, interventional solutions, surgery, and vision fields.

Johnson & Johnson (NYSE:JNJ) has strong fundamentals. It reported sales of $88.8 billion for fiscal year 2024, reflecting a 4.3% year-over-year growth. These strong results reflect 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.

On January 13, Johnson & Johnson (NYSE:JNJ) announced the $14.6 billion acquisition of neurological drugmaker IntraCellular. This acquisition will allow the company access to Caplyta, an oral drug for the treatment of bipolar disorder and schizophrenia.

On April 9, Goldman Sachs analyst Asad Haider resumed coverage with a Buy rating on Johnson & Johnson (NYSE:JNJ) and set a price target of $172.00. Morgan Stanley also raised the firm’s price target on the company to $164 from $163, keeping an Equal Weight rating on the shares. According to billionaires, the company ranks fifth on our list of the top medical stocks to invest in.