8 Best Inexpensive Stocks To Invest In Now

6. Johnson & Johnson (NYSE:JNJ)

Forward Price-to-Earnings Ratio: 14.97

Market Cap as of September 26: $387.09 billion

Number of Hedge Fund Holders: 80

Johnson & Johnson (NYSE:JNJ) is a pharmaceutical, biotechnology, and medical technologies corporation that operates in 3 main segments: consumer health, pharmaceuticals, and medical devices. It’s one of the largest healthcare companies in the world, known for its diverse range of products, including over-the-counter medications, prescription drugs, medical devices, and consumer healthcare products.

It has achieved regulatory approvals for RYBREVANT and TREMFYA. Its acquisition of Shockwave Medical in April strengthened its position in cardiovascular intervention and medical technology. All segments are expected to grow at a compound annual growth rate of 5-7% between 2025 and 2030. Additionally, over 10 assets in the Innovative Medicine segment have the potential to generate projected operational sales of over $5 billion each.

The earnings per share in Q2 2024 were $2.82, while the revenue stood at $22.45 billion, despite a year-over-year drop of 12.08%. Xarelto, Stelara, and Imbruvica accounted for 19% of revenue. The company’s oncology sector, led by Darzalex, saw sales grow 16% to $5.09 billion. International sales grew by 7.1% year-over-year, and adjusted earnings per share increased by 10.2% during the same time.

The company’s success is driven by its strong history of innovation, robust fundamentals, and a diversified product portfolio. It has numerous products generating over $1 billion in sales, and many of these products hold top market positions, making it a strong investment choice.

ClearBridge Large Cap Value Strategy made the following comment about Johnson & Johnson (NYSE:JNJ) in its Q3 2023 investor letter:

“The health care space provided some opportunities in the quarter, as we increased our exposure to medical device company Becton, Dickinson as well as large cap pharmaceutical company Johnson & Johnson (NYSE:JNJ). Johnson & Johnson recently spun out its consumer health care business, becoming a more focused yet broadly diversified pharmaceutical and medtech company.”