Does Johnson & Johnson Support Higher Prices?
With shares of Johnson & Johnson (NYSE:JNJ) trading around $85, is JNJ an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The company offers a range of products used in general care, women’s health fields, nutritional and anti-infective, contraceptive, gastrointestinal, oncology, pain management, and vaccines. It also offers products to treat cardiovascular disease, orthopedic and neurological products, blood glucose monitoring and insulin delivery products, and general surgery products. Through its wide variety of health care products, Johnson & Johnson is able to support consumers and medical businesses around the world that continue to demand improved products.
Recently, the Defense Department has awarded two contracts to Johnson & Johnson, worth more than $62 billion all told. One is for $42.1 million, when the Department exercises the fifth of seven possible option-year extensions on a contract through which to provide the United States Army, Air Force, Navy, Marine Corps, and federal civilian agencies with “various medical and surgical products.” The other contract, worth $21.6 million, is connected with exercising the fourth of seven possible option-year extensions on a separate contract to supply like products to the same military branches and government agencies.