Since 2009, shares have risen 14.4%. Crappy performance compared to its peers.
PFE is up 46.2%; GSK is up 34.5% and MRK is up 39.7%.
Johnson & Johnson retains a premium to both Pfizer and Merck. It trades at 12.6 times trailing earnings. Pfizer fetches 9.6 times. Merck sells for 10.2 times.
The steady drumbeat of recalls and other miscues is taking its toll. Investors and customers are looking elsewhere. Not surprising that the stock sells off at every opportunity. Company needs to do something to justify the premium. Earnings that beat expectations, getting past the quality problems, dividend increase, etc. Otherwise, expect more of the same.
The long term performance has a lot of catching up to do
Those people have been gone for awhile. Firing long term sernior managemetn does not solve their ongoing Quality and Compliance problems. Resolution fo those issues will take much longer. McNeil is under a concent decree which requires a contracted thired party review and approval of all production. The third party is agreed to by both the FDA and JNJ.
I agree, this POS is having a lot of trouble just closing green each day it trades. The ONLY good thing about the stock is that it pays 3.6% div. If it werent for that, I would have sold it long ago.