We recently published a list of 12 Safe Stocks to Buy for the Long Term in 2025. In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against other safe stocks to buy for the long term in 2025.
The US stock market is often regarded as one of the most reliable and resilient financial markets in the world. With its deep liquidity, broad participation, and historical ability to recover from downturns, it has long been a cornerstone of wealth creation for individual and institutional investors. While it is subject to short-term volatility, its long-term performance and structural advantages make it a reliable platform for investment. It has a proven track record of delivering strong returns over the long term. The S&P 500, a benchmark index that represents the performance of 500 large-cap US companies, has averaged an annual return of approximately 10% since its inception in 1926. While short-term fluctuations are inevitable, the market’s historical trajectory has been one of growth, driven by corporate innovation, economic expansion, and rising consumer demand.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
During major crises such as the Great Depression, the 2008 financial crisis, and the COVID-19 pandemic, the market experienced sharp declines but eventually rebounded to new highs. For example, after the COVID-19 crash in March 2020, the S&P 500 recovered within six months and went on to hit record levels, underscoring its resilience. One of the key factors contributing to the reliability of the US stock market is its breadth and diversity. The market includes a wide array of industries, from technology and health care to consumer goods and energy, allowing investors to diversify their portfolios to reduce risk. Additionally, US exchanges like the New York Stock Exchange and Nasdaq are among the most liquid in the world, making it easy for investors to buy and sell shares efficiently. This liquidity and diversification provide a level of stability that is unmatched in many other markets, offering investors confidence in the market’s ability to withstand shocks and recover from volatility.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected stocks that have solid businesses with recurring revenue streams, reliable dividend payouts, and burgeoning growth pipelines. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A smiling baby with an array of baby care products in the foreground.
Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 81
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. There are various reasons why this company makes an excellent investment. First and foremost, as per the report for the fourth quarter of 2024, full-year reported sales growth reached 4.3% to $88.8 billion, with operational growth at 5.9% and adjusted operational growth at 5.4%. Moreover, operational growth excluding COVID-19 Vaccine was 7%, which demonstrates sustainable revenue growth from core operations, ensuring long-term financial stability and shareholder confidence. In addition to this, the company has acquired all outstanding shares of Intra-Cellular Therapies for $132 per share in cash for a total equity value of approximately $14.6 billion. This acquisition would differentiate the company’s portfolio and would serve as a strategic near- and long-term growth catalyst for the company, adding value to patients, health systems and shareholders. Lastly, the company has initiated the submission of an original New Drug Application with the US Food and Drug Administration (FDA) for TAR-200 for the treatment of patients with Bacillus Calmette-Guérin (BCG)-unresponsive high-risk non-muscle-invasive bladder cancer (HR-NMIBC) with carcinoma in situ (CIS), with or without papillary tumors.
Overall, JNJ ranks 7th on our list of safe stocks to buy for the long term in 2025. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.