5 Best Cancer Stocks to Buy Now

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund holders: 83

Johnson & Johnson (NYSE:JNJ) is a New Jersey-based company that produces pharmaceuticals, medical devices, and consumer health goods. The hedge fund sentiment for the company remained unchanged in Q1 and Q2 of 2022. 83 hedge funds held positions in the company, while GQG Partners held the most significant stake in both quarters. However, in the second quarter, Fisher Asset Management increased its holdings in the company by a whopping 798% to 5.729 million shares, worth over $1.017 billion, to become the second largest stakeholder in the company.

Johnson & Johnson (NYSE:JNJ)’s oncology arm is one of the fastest-growing segments of the company. The segment was responsible for $2 billion in revenue in 2010 and reached $12 billion in 2020. In the June quarter, its cancer drug Darzalex alone represented a 40% sales growth on a YoY basis to $1.99 billion.

Johnson & Johnson (NYSE:JNJ) is a dividend king that has consecutively raised its dividend for 60 years. As of September 28, the company has a dividend yield of 2.75% with a quarterly dividend of $1.13. The latest dividend was paid out on September 6 to the shareholders of record on August 23.

In the last 3 months, 12 analysts have covered Johnson & Johnson (NYSE:JNJ) with an average price target of $188.33 and a Moderate Buy rating on the company shares.

Here is what Mayar Capital had to say about Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter:

“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.

To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…” (Click here to see the full text)

You can also take a look at 15 Best Gambling Stocks To Buy Now and 10 Best Stocks for Dividends.

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