7 Cheap Blue Chip Stocks to Invest in Now

2. Johnson & Johnson (NYSE:JNJ)

Forward P/E Ratio: 16.42

Earnings Growth This Year: 1.10%  

Number of Hedge Fund Holders: 80

Johnson & Johnson (NYSE:JNJ) is one the leaders when it comes to major healthcare companies. It mainly focuses on Innovative Medicine and MedTech and has developed treatments for various cancer, immune system disorders, brain-related, heart and lungs related diseases.

The company has numerous strategic advantages originating from its history of innovation and robust fundamentals to a diversified product portfolio. The company mentions that it has more than 25 products that contribute more than $1 billion in sales for the company. Moreover, Johnson & Johnson (NYSE:JNJ) generates most of its revenue from products that rank within the top two positions in their market category.

On top of this, the company is also undervalued with a forward price-to-earnings ratio of 16, a 25% discount to its sector, and earnings expected to grow by 1% during the year. Thereby making it one of the cheap blue chip stocks to invest in now.

If we look at the most recent quarter results, which is the fiscal second quarter of 2024, we see that Johnson & Johnson (NYSE:JNJ) has grown its international sales by 7.1% year-over-year. Whereas, its adjusted earnings per share has increased 10.2% during the same time.

The prospect of growth for the company is even brighter. Its psoriasis and ulcerative colitis drug Tremfya was recently approved by the FDA, indicating a strong addition to its product portfolio.