Johnson & Johnson (JNJ, Financial), Medtronic PLC (MDT, Financial) and Eli Lilly and Co (LLY, Financial) are strong performers, as their share prices have increased more than the S&P 500 index over the past several years. The high profitability of their operation has served as a catalyst.
Furthermore, these companies have received an overweight recommendation rating from Wall Street analysts, indicating that their share prices are predicted to keep on outperforming.
Johnson & Johnson
Shares of Johnson & Johnson have increased nearly 4% over the past year, 8% over the past two years and 40.5% over the past five years through April 10, topping the S&P 500 by 8%, 4.6% and 9.7%, respectively.
The New Brunswick, New Jersey-based drug giant has also paid quarterly dividends over the observed years. The last payment of 95 cents per common share was made on March 10. As of April 10, the dividend yield is 2.7% versus the S&P 500's of 2.14%.
Johnson & Johnson has an operating margin of 24.5% versus the industry median of 5.5% and a net margin of 18.42% versus the industry median of 3.2%. Moreover, the company has a return on equity of 25.4% versus the industry median of 3%.
The stock closed at a price of $141.23 per share on April 10 for a market capitalization of $371.36 billion.
The stock has a price-earnings ratio of 25.09, a price-sales ratio of 4.62 and a price-book ratio of 6.25. These ratios indicate that the stock price is not at its cheapest.
Medtronic PLC
Shares of Medtronic PLC have increased by 16.5% over the past year, 27% over the past two years and 26.1% over the past three years through April 10, topping the S&P 500 by 20.5%, 23.5% and 9.3%, respectively.
The Irish manufacturer and seller of medical devices and therapies has also paid quarterly dividends over the period in question. Currently, the company pays 54 cents per common share, generating a 2.16% dividend yield versus the S&P 500’s 2.14% as of April 10. The next payment is scheduled for April 17.
Medtronic has an operating margin of 22.12% versus the industry median of 2.92% and a net margin of 17.11% versus the industry median of 0.83%. Furthermore, the company has a return on equity of 10.52% versus the industry median of 1.52%.
The stock closed a price of $101.03 per share on April 10 for a market capitalization of $135.41 billion.
The stock has a price-earnings ratio of 25.64, a price-sales ratio of 4.4 and a price-book ratio of 2.64. These ratios suggest that the stock is not trading cheaply.
Eli Lilly and Co
Shares of Eli Lilly and Co have increased by 18.4% over the past year, 82.8% over the past two years, 69% over the past three years and 98% over the past five years through April 10, topping the S&P 500 by 22.4%, 79.3%, 52.2% and 67.2%, respectively.
The Indianapolis-based drug giant has also paid quarterly dividends over the observed period. Currently, the company pays 74 cents per common share, which generates a dividend yield of 1.84% as of April 10.
Eli Lilly and Co has an operating margin of 26.9% versus the industry median of 5.5% and a net margin of 37.3% versus the industry median of 3.15%. Also, the company has a return on equity of 197.3% versus the industry median of 3.07%.
The stock closed at a price of $145.73 per share on April 10 for a market capitalization of $139.47 billion.
The stock has a price-earnings ratio of 16.79, a price-sales ratio of 6.09 and a price-book ratio of 53.68. These ratios indicate that the share price is currently not trading cheaply.
Disclosure: I have no positions in any securities mentioned.
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