$64.16
0.28 (+0.44%)
Johnson & Johnson (JNJ)
CAPS Rating:
Engaged in the research and development, manufacture and sale of a range of products in the health care field in many countries of the world.
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Long term, solid company. A vast stable of staples, products that consumers will want and need to buy regardless of the recession/depression. It's hard to imagine any company as being recession-proof, but I think Johnson & Johnson comes very close to that wishful ideal. During the recession of 1992-1993, it lost about 20% of its value, but other companies lost much more. During the gloomy times of mid-2001 through 2003, it traded sideways while most other large-cap companies lost money. It currently has nice profit & operating margins of 19.5% & 25.3%, RoA=12.3%, RoE=28.2%, a 6.4 quarterly revenue growth with a 29.9% quarterly earnings growth. Very nice. Hopefully, that will continue. For a large cap, it also seems to have its debt load under control, something that will separate the strong from the weak in the coming months. To wit, JNJ's Debt/Equity ratio is 32%, and has a book value of $16.45/share, which is twice better than my internal yardstick of 1/7th that of its price (currently $58.70). While we wait for the stock to appreciate, the dividend yield will help us out a bit at its current 5-year average of 2.1% (hey, it's not great, but it's there!). Finally, very few people are going against this stock, as the short interest is extremely low at only 0.80% of the float (yep, less than 1% -- nice & stable). This would be a good place to park your money for the next 2-3 years, IMO.
Why does such a huge company have its leading bull and bear pitches only recommended by 3 people at most?
I think they try to switch up the leading posts to avoid the Amazon conundrum, e.g. review written 07/06/1999, 12,503 out of 12,658 found useful, click to see 1,015 more reviews. If so kudos to MF caps as it's a great idea to keep helpful content up to date.
That's exactly right, joshbk. CAPS keeps the limit down to 90 days, I think. Somewhere, there's a rule book that lays it out exactly, but since I write the pitches mostly for myself (to know what I was thinking at the time), it doesn't matter to me that CAPS puts a time-limit on the review process. However, it is very helpful in keeping content up-to-date, as you pointed out. (But I do appreciate the Recommendations--thanks!)