Jim Cramer Sees Opportunity in Pessimism and Highlights These 12 Stocks

9. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund holders: 98

During a discussion about pharmaceutical tariffs and supply chain resilience, Jim Cramer highlighted Johnson & Johnson (NYSE:JNJ) as an example of a company with strong domestic manufacturing and resilient fundamentals. He praised CFO Joe Wolk’s recent appearance on air and noted how J&J continues to be one of the premier drug developers in the country, offering long-term upside despite recent stock fluctuations. Here is what he said:

“But J&J is a good example of what’s happening. J&J stock was up a dollar. It’s up a half. I listened to Joe Wolk. He was, as usual, phenomenal on air. I know that there were some issues about tariffs. Next thing you know, it’s down two and a half. Now it’s coming back. […]

I want to recommend JNJ today. That was Joe Wolk on Squawk. He was absolutely sensational. And we left out that there were so many good things. But one thing is they do have the most domestic manufacturing. So if you do believe there’ll be a hit, they’re not going to get the hit proportionally.  They actually raised; they encourage the sell-side to increase for big pharma indications the middle years and I have a call for instance, bravado, which is what something they use for depression that turned out to be it wasn’t an afterthought, but it was small. It’s trying to be very very big. They’ve got some very good things for Crohn’s disease and I would point out that J&J is still one of the great premier developers of fantastic drugs. It sells at 14 times earnings. I believe that its talc problems are now behind it because they’re going to take them one by one. They’ve only lost one case. What a great opportunity to buy a great, great American company.”