Jim Cramer Discussed 9 Stocks for This Week’s Game Plan

6. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE:JNJ) is a full-service healthcare company involved in the research, development, production, and sale of a wide variety of healthcare products. The company will announce its fourth-quarter results this week and Cramer remarked:

“Wednesday we got some real firecrackers… We also get results from two household names, Procter & Gamble and Johnson & Johnson. I think Procter might struggle with the strong dollar in China while J&J still has to deal with talc asbestos lawsuits and the recent acquisition of Intra-Cellular for $14 billion, which could threaten its pristine credit rating. The market has turned against these kinds of stocks viciously. Too slow growing. I think you can put either way though and make good money just by reinvesting their juicy dividends.

Doesn’t help that all pharma’s are under the microscope as President Biden rushed out a series of drugs that Medicare will try to get better prices for. This is the one part of the Inflation Reduction Act that actually reduces inflation at the expense of the drug companies. One of the most popular medicines for instance of the year Wegovy, that’s the weight loss drug from Novo Nordisk will get a ton of scrutiny as the White House put it on the list.”

Cramer also mentioned that Eli Lilly has a comparable drug, and now people are concerned that the same issues could arise when it faces regulatory review, causing the stock to drop once again. He acknowledged that the decline wasn’t surprising, but it still hurt, especially with so many other stocks seeing strong gains.