7 Most Profitable Cheap Stocks To Invest In

5. Johnson & Johnson (NYSE:JNJ)  

Number of Hedge Fund Holders: 80  

Forward P/E Ratio as of October 7: 16.04  

TTM Net Income: $38.01 Billion  

5-Year Net Income CAGR: 18.41%

Johnson & Johnson (NYSE:JNJ) is one of the world’s largest healthcare and pharmaceutical companies that has a wide portfolio spanning pharmaceuticals, medical devices, and consumer health products.

Johnson & Johnson’s (NYSE:JNJ) Tremfya, a fully human, dual-acting monoclonal antibody treatment has made a significant impact in immune-mediated diseases. The treatment has shown remarkable growth, with a 28.3% year-over-year increase in Q2 2024, and is expected to continue to be a major contributor to the company’s revenue growth, particularly as it expands its indications and patient base. Tremfya will also provide a boost to the company’s reputation and credibility in the field of immunology, potentially leading to increased investment and partnerships in the future.

On October 2, Johnson & Johnson (NYSE:JNJ) submitted a supplemental Biologics License Application (sBLA) to the U.S. Food and Drug Administration (FDA) for approval of a new indication for Darzalex Faspro (daratumumab and hyaluronidase-fihj), in combination with bortezomib, lenalidomide, and dexamethasone (D-VRd), for the treatment of adult patients with newly diagnosed multiple myeloma (NDMM) for whom autologous stem cell transplant (ASCT) is deferred or who are ineligible for ASCT. This is a significant step forward in the company’s efforts to provide innovative and effective treatments for patients with this debilitating disease, once approved, Darzalex Faspro will remain a key driver of growth and innovation in the multiple myeloma treatment landscape, ultimately improving the lives of patients and their families.

On October 1, Johnson & Johnson (NYSE:JNJ) announced that it would invest over $2 billion in a state-of-the-art biologics manufacturing facility in Wilson, North Carolina. The new facility will expand the production of the company’s portfolio and pipeline of innovative biologics, supporting its goal of advancing more than 70 novel therapies and product expansion filings and launches by the end of the decade.

Johnson & Johnson (NYSE:JNJ) reported a significant increase in net income for the twelve months ending June 30, with a 191.24% year-over-year growth to $38.01 billion, supported by a strong 5-year net income compound annual growth rate (CAGR) of 18.41%. Johnson & Johnson’s (NYSE:JNJ) forward P/E ratio of 16.04 represents a 25.16% discount compared to the sector median of 21.44. Industry analysts are bullish on the company’s stock price and have a consensus Buy rating at a target price of $172.31, which implies a 7.30% increase from its current level.