I've never bought a stock before, isn't a PEG of 2.27 pretty expensive?
Nope. The P/E earnings is inflated because of large acquisition writedowns JNJ took in 2012. Once those fall off the ttm earnings, the PE will indeed come back toward the mid-teens, but not because of negative EPS growth. There is also a strong case for EPS growth in 2013, which I assume most people are familiar with by this point.