11 Cheap NYSE Stocks to Invest in According to Hedge Funds

7. Johnson & Johnson (NYSE:JNJ)

Forward P/E Ratio as of April 8: 14.24

Number of Hedge Fund Holders: 98

Johnson & Johnson (NYSE:JNJ) engages in the R&D, manufacture, and sale of various products in the healthcare field through the Innovative Medicine and MedTech segments. It distributes its products to wholesalers, hospitals, and retailers, as well as physicians, nurses, hospitals, eye care professionals, and clinics.

In 2024, the company’s operational sales surged by a 7% year-over-year increase, excluding the impact of COVID-19 vaccine. The company’s total number of billion-dollar revenue platforms is now 26, including the recent addition of SPRAVATO. Its Innovative Medicine segment exceeded $14 billion in sales for the third consecutive quarter, with 10 brands achieving double-digit growth. A focus on cash flow helped the company generate about $20 billion in free cash flow by the end of 2024, which was an increase of $1.6 billion year-over-year.

As March was concluding, Johnson & Johnson (NYSE:JNJ) announced plans to invest more than $55 billion in US manufacturing, R&D, and technology over the next 4 years. This is 25% higher from the previous investment period. These investments could potentially contribute ~$100 billion annually to the US economy. On April 4, UBS reaffirmed its Buy rating and $180 price target on the company due to its strong core business. The firm highlighted a 14% sequential rise in total prescription growth for Tremfya, which is its drug for plaque psoriasis and psoriatic arthritis.