1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells a range of healthcare products through its subsidiaries and tops the list for being one of the best psychedelic stocks. The business is divided into two segments: Innovative Medicine and MedTech, with a primary focus on human health and well-being. Its Innovative Medicine division covers therapeutic areas such as infectious diseases, immunology, neuroscience, metabolic and cardiovascular disorders, pulmonary hypertension, and oncology. The MedTech segment includes a variety of medical devices used in cardiovascular intervention, orthopedics, interventional solutions, surgery, and vision.
As part of its commitment to neuroscience and mental health treatments, Johnson & Johnson (NYSE:JNJ) is advancing psychedelic medicine with Spravato (esketamine), an FDA-approved nasal spray for treatment-resistant depression and acute suicidal ideation. Since its 2019 approval, Spravato has seen strong commercial success, with Q2 2024 sales reaching $271 million and projected annual revenue exceeding $1 billion. Its success highlights the commercial viability of psychedelic-based treatments. The corporation continues investing in neuropsychiatric research, conducting clinical trials, and gathering real-world data to support drug development, further encouraging research, investment, and regulatory advancements in the psychedelic industry.
Expanding its neurological portfolio, Johnson & Johnson (NYSE:JNJ) announced the $14.6 billion acquisition of IntraCellular on January 13, gaining access to Caplyta, an oral drug for treating bipolar disorder and schizophrenia. The acquisition strengthens the company’s presence in the mental health sector while complementing its existing neuroscience pipeline.
Beyond its pharmaceutical advancements, Johnson & Johnson (NYSE:JNJ) maintains strong fundamentals with a AAA credit rating, higher than that of the US government. In fiscal year 2024, the company reported sales of $88.8 billion, reflecting a 4.3% year-over-year growth. Its revenue reached $22.5 billion, marking a 5.2% year-over-year increase. The MedTech segment saw a 6.2% rise in global operational sales, with acquisitions and divestitures contributing 1.5% to this growth. Growth in the Cardiovascular division was driven by strong demand for electrophysiology products and Abiomed, while the General Surgery segment expanded due to increased sales of wound closure products.
Overall, Johnson & Johnson (NYSE:JNJ) ranks first among the 12 best psychedelic stocks to buy in 2025. While we acknowledge the potential of pharmaceutical companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
