5 Best Counter Cyclical Stocks To Buy Now

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 84

Johnson & Johnson (NYSE:JNJ) is an American multinational company that develops, manufactures, and markets various products in the healthcare field worldwide. Johnson & Johnson (NYSE:JNJ) anticipates its adjusted EPS outlook for FY2023 to fall within the range of $10.45 to $10.65. The consensus estimate for the same period is $10.33. The company also projects its operational sales for the entire year of 2023 to be in the range of $96.9 billion to $97.9 billion, whereas the consensus for the same period is $97.73 billion.

On March 1, Guggenheim initiated coverage of Johnson & Johnson (NYSE:JNJ) with a Neutral rating and a price target of $161. Although the firm agrees with Johnson & Johnson (NYSE:JNJ)’s decision to separate its Consumer Health business and sees signs of recovery in the MedTech segment, it would prefer more clarity on the outlook of the Pharma division. This is due to the upcoming patent expirations, including Stelara later in the year. The firm noted that their sales forecast is below management’s expectations of $60 billion in Pharma sales in 2025 and also lower than management’s projections for several pipeline assets with a peak annual sales potential of $1 billion or $5 billion.

According to Insider Monkey’s Q4 data, 84 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ), compared to 85 funds in the last quarter. Ray Dalio’s Bridgewater Associates is a prominent stakeholder of the company, with 3.5 million shares worth $630.2 million. 

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:

“Johnson & Johnson (NYSE:JNJ) 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 makes and spends 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 orthopedics. 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 (…read more)