1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (188) 

Here's Why Johnson & Johnson Is a Good Investment at 52-Week Highs

August 25, 2014 | About:

Johnson & Johnson (NYSE:JNJ) is appreciating a decent time in 2014, liking 10% and beating the more extensive market so far. The human services major conveyed strong second-quarter results, determined by the strong performances of over-the-counter products, skin mind and child mind products. Moreover, universal sales of its oral consideration and female security products were strong. Besides, its hepatitis C medication, Olysio, also drove the organization's sales.

Development drivers to quicken its business

Johnson & Johnson is following a few strategic development drivers. It is focused on making esteem through advancement, worldwide achieve, neighborhood focus and greatness in execution. Also, Johnson & Johnson has redesigned its strategic schema with a disciplined and focused methodology, which should assist the organization in turning into the largest and the most diverse human services organization on the planet.

Likewise, Johnson & Johnson has now strengthened its portfolio, and this would help it better tap hospital systems and oversee mind organizations while striking right adjust on quality, service and development. Also, the organization will keep making consistent investments in R&D keeping in mind the end goal to keep up the pace of development.

As indicated by Johnson & Johnson, the worldwide social insurance business sector is enormous with a general spending of over $8 trillion. The organization is focused on dispatching various new products to profit from this tremendous development opportunity.

Strong reception of products and striving for additional

Johnson & Johnson experienced strong development of almost 17% in the worldwide business sector and around 25% in the U.s. in over-the-counter sales. Its upper respiratory products and digestive wellbeing & against smoking products were sought after amid the quarter.

Besides, Johnson & Johnson has strategically distinguished 11 key need states. The organization is on track to tap them with its expertise. It is also focusing on 12 well-known brands to ensure that they surpass consumer expectations far and wide. For Example, Johnson & Johnson has observed strong development in the oral forethought business outside the U.s., and consistent change in the item portfolio will empower it to sustain the development going ahead.

Separated from this, the organization is strategically occupied with creating partnerships with a lot of people huge retailers across the world that should boost its sales going ahead. Its strategic associations are planned to deploy a good experience to customers in OTC categories by sharing insights and creating habits to lessen many-sided quality for consumers. Also, Johnson & Johnson is making great progress in restoring brands to the shelves to convey above business sector development.

New launches will go about as catalysts

To keep up the strong development in this division, Johnson & Johnson as of late propelled CORAIL revision Hip System in both the U.s. what's more Europe. Its Trauma business is also progressing pleasantly, accomplishing solid 7% development in the reported quarter. Looking ahead, the organization expects this segment to keep developing, determined by the positive effect of a delicate it won in the Middle East as a result of its far-reaching offerings.

Going ahead, the late FDA endorsement of its supplemental PMA with the SEDASYS System should upgrade development. The organization plans to present this engineering in the U.s. showcase in the second 50% of 2014.

Besides, Johnson & Johnson has also propelled HARMONIC Ace+7 Shears with cutting edge hemostasis, the first absolutely ultrasonic gadget with a 7 millimeter sealing sign. It believes that this innovation will help Johnson & Johnson accomplish an aggressive edge over peers. Johnson & Johnson anticipates strong contributions from its as of late dispatched products, as well as from its pipeline that includes more than 30 real filings arranged before the end of 2016.


Johnson & Johnson can keep investing in new item improvement, alongside promoting, to fuel its development. Additionally, throughout the following five years, Johnson & Johnson's earnings are estimated to develop at a CAGR of 7.1%, which is superior to the development of 5.5% reported in the last five years. Also, Johnson & Johnson carries a strong dividend yield of 2.70%

Thus, all things considered, Johnson & Johnson still looks like a solid investment and investors should keep holding the stock despite the fact that it is exchanging at 52-week highs.

Rating: 2.2/5 (6 votes)



Sugden.stuart - 3 years ago    Report SPAM

From reading artcle I am thnking JNJ is now most excellent honored addition for portfolio management thinking. This adds 50% upside to now growing world market which emboldens confidence rating. (sic) Seriously folks was this article written by a monkey or a computer? Just because you have some English vocabulary doesn't mean you can write English. Had you just watched the excellent play Chinglish? Or was the whole thing tongue-in-cheek? Try having someone who actually speaks the language proof read it for you!!!

Please leave your comment:

Performances of the stocks mentioned by rusticnomad

User Generated Screeners

dosowsky1Fast Revenue Growth
Kbannon77All Stocks US
Kbannon77All Stocks
opadovaniP median2
carter2u2Small Cap No Debt
bkw82Predictable/ebitda 10/52 week
pbarker46Hist. High Yield
andrewgu999valleylink - gogogo
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat