Jim Cramer highlights Johnson & Johnson’s lack of near-term patent cliffs and growing billion-dollar drug portfolio as key positives.
Johnson & Johnson (NYSE:JNJ) was spotlighted for its robust pharmaceutical pipeline and absence of major patent expirations, a rarity among large drugmakers. The company has 10 drugs generating over $1 billion annually, with additional candidates in development, alongside a growing medtech segment bolstered by acquisitions like Shockwave and Abiomed.
JNJ’s price-to-earnings ratio stands at 19, considered low for its sector, and the company is divesting its lower-margin artificial hips and knees business. Unlike peers, JNJ faces no imminent revenue threats from patent losses, with new drugs expected to offset any declines.
Cramer recommended gradual accumulation of JNJ shares, citing limited current support but potential upside as market rotations shift. The stock remains an outlier in an otherwise challenged healthcare sector.