5 Best Recession Stocks to Buy According to Wells Fargo

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

From Wells Fargo’s healthcare stock picks for a recession, we have chosen Johnson & Johnson (NYSE:JNJ). The company’s legacy business operations and rich dividend history make it a compelling investment option for challenging times like these. As of June 22, Johnson & Johnson (NYSE:JNJ) has a forward dividend yield of 2.67% and has gained 5.74% over the past twelve months.

On April 19 Johnson & Johnson (NYSE:JNJ) reported earnings for the first quarter of fiscal year 2022, in which it exceeded EPS expectations. The company reported earnings per share of $2.67 and beat estimates by $0.10. The company’s revenue for the quarter amounted to $23.43 billion, up 4.95% year over year, but missed estimates by $192.16 million. As of May 23, SVB Leerink analyst David Risinger has an Outperform rating and a $200 price target on Johnson & Johnson (NYSE:JNJ).

As of March 31, Arrowstreet Capital is the most prominent shareholder in Johnson & Johnson (NYSE:JNJ). The fund’s stakes in the healthcare giant are valued at $1.17 billion, up 38% from its Q4 2021 stakes.

At the end of the first quarter of 2022, 83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) with stakes worth $7.40 billion. This is compared to 83 positions in the fourth quarter of 2021, with stakes worth $7.38.