10 Best Vaccine Stocks to Buy According to Hedge Funds

2. Johnson & Johnson (NYSE:JNJ)

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.

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.

Apart from that, the company has strong fundamentals and a AAA credit rating, which is higher than that of the US government. Johnson & Johnson (NYSE:JNJ) reported sales of $88.8 billion for fiscal year 2024, reflecting a 4.3% year-over-year growth. Its revenue reached $22.5 billion in revenue, marking a 5.2% year-over-year increase. The MedTech segment saw a 6.2% increase in global operational sales, with acquisitions and divestitures contributing 1.5% to the growth. Growth in the Cardiovascular division was attributed to strong demand for electrophysiology products and Abiomed, while the General Surgery segment grew due to increased sales of wound closure products.

Johnson & Johnson (NYSE:JNJ) has various other growth opportunities, such as the robotic-assisted surgery industry. It is developing the Ottava system to compete in the sector, which is expected to drive further growth for the company after its approval.