Is JNJ stock recession proof? (2024)

Is JNJ stock recession proof?

Johnson & Johnson (NYSE:JNJ) With six decades of consistent dividend increases under its belt and long-term growth catalysts, Johnson & Johnson (NYSE:JNJ) remains one of the safest stocks to buy for both recession and normal market environments.

Is Johnson and Johnson recession proof?

It also develops and sells medical devices and pharmaceuticals. These products benefit from stable demand throughout the economic cycle, making investing in Johnson & Johnson stock relatively safe during a recession.

What stocks are most recession proof?

The best recession stocks include consumer staples, utilities and healthcare companies, all of which produce goods and services that consumers can't do without, no matter how bad the economy gets.

Is Johnson and Johnson a risky investment?

Johnson & Johnson isn't the safe stock it used to be

Until there is a resolution to the talc-related issues, the stock is simply too big of a risk these days. The legal bills pose a threat to the company's dividend and its long-term growth objectives.

What is the long-term outlook for JNJ?

In December, the company announced its long-term guidance, which projected an annual growth rate between 5% and 7% from 2025 through to 2030.

Is Johnson and Johnson a good long term investment?

Over the last three years, Johnson & Johnson recorded free cash flow worth a fulsome 81% of its EBIT, which is stronger than we'd usually expect. That positions it well to pay down debt if desirable to do so.

Is Johnson and Johnson financially healthy?

J&J, whose financial results are considered a bellwether for the broader health sector, booked $21.40 billion in total sales for the final three months of 2023, up 7.3% from the same quarter in 2022. The pharmaceutical giant reported net income of $4.13 billion, or $1.70 per share during the quarter.

Where is your money safest during a recession?

Where to put money during a recession. Putting money in savings accounts, money market accounts, and CDs keeps your money safe in an FDIC-insured bank account (or NCUA-insured credit union account). Alternatively, invest in the stock market with a broker.

What not to invest in during a recession?

Most stocks and high-yield bonds tend to lose value in a recession, while lower-risk assets—such as gold and U.S. Treasuries—tend to appreciate.

Who makes money in a recession?

Healthcare Providers

If any industry can be said to be recession-proof, it's healthcare. People get sick in good times and bad, so the healthcare industry isn't likely to have the same level of cutbacks or job losses that other less essential businesses may experience.

Should I buy JNJ stock now?

Johnson & Johnson's analyst rating consensus is a Moderate Buy. This is based on the ratings of 12 Wall Streets Analysts.

Is JNJ a buy or sell?

Johnson & Johnson stock has received a consensus rating of buy. The average rating score is Aaa and is based on 43 buy ratings, 32 hold ratings, and 1 sell ratings.

Why should I buy JNJ stock?

Johnson & Johnson's JNJ biggest strength is its diversified business model. It operates through pharmaceuticals, medical devices and consumer products divisions. J&J has 25 platforms with more than $1 billion in annual sales.

What are analysts saying about JNJ stock?

Based on analysts offering 12 month price targets for JNJ in the last 3 months. The average price target is $174.8 with a high estimate of $215 and a low estimate of $155.

What will JNJ stock be worth in 5 years?

Johnson & Johnson stock price stood at $149.12

According to the latest long-term forecast, Johnson & Johnson price will hit $150 by the middle of 2024 and then $200 by the end of 2027. Johnson & Johnson will rise to $250 within the year of 2029 and $300 in 2032.

Why is JNJ breaking up?

The split allows J&J's executives to focus more on developing innovations and expanding the businesses of medical technologies and pharmaceuticals. “We need to be a top-tier medical tech company and a top-tier pharmaceutical company, first and foremost,” Chief Financial Officer Joseph Wolk said.

Which is better to invest in Pfizer or Johnson and Johnson?

PFE's forward EV/Sales multiple of 2.94 is lower than JNJ's 4.35. PFE's forward EV/EBITDA multiple of 8.78x is lower than JNJ's 12.07x. PFE's trailing-12-month levered FCF margin of 8.29% is lower than JNJ's 23.23%. In addition, PFE's trailing-12-month asset turnover ratio of 0.33x is lower than JNJ's 0.48x.

Who is the biggest investor in Johnson and Johnson?

Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Morgan Stanley, State Farm Mutual Automobile Insurance Co, Spdr S&p 500 Etf Trust, and ...

Is JNJ undervalued?

Intrinsic Value. The intrinsic value of one JNJ stock under the Base Case scenario is 156.07 USD. Compared to the current market price of 150.08 USD, Johnson & Johnson is Undervalued by 4%.

How much will JNJ make in 2024?

J&J now expects its adjusted earnings per share for 2024 to be in the range of $10.57 and $10.72, versus its prior estimate was $10.55 to $10.75. Johnson & Johnson's revenue of $21.4 billion in Q1 was up 2.3% y-o-y.

What is the future of Johnson and Johnson?

J&J expects to grow operational sales by 5%-7% through 2027. Notably, it anticipates a third of its sales to come from new products in 2027. The company set 2024 sales growth forecasts for between 5%-6%. It expects adjusted earnings per share to range between $10.55 and $10.75.

What is the financial situation of Johnson and Johnson?

J&J's financial results are considered a bellwether for the broader health sector. The company posted $21.38 billion in total sales for the first three months of 2024, up more than 2% from the same quarter in 2023.

Is it better to have cash or property in a recession?

Cash: Offers liquidity, allowing you to cover expenses or seize investment opportunities. Property: Can provide rental income and potential long-term appreciation, but selling might be difficult during an economic downturn.

What is the best asset to hold during a recession?

Should I keep cash during recession?

High-yield savings account

Cash? Yes, cash can be a good investment in the short term, since many recessions often don't last too long. Cash gives you a lot of options.