|Bid||145.42 x 1100|
|Ask||148.13 x 900|
|Day's Range||143.12 - 146.41|
|52 Week Range||131.91 - 170.26|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.08|
|Expense Ratio (net)||0.43%|
Johnson & Johnson continued its long streak of earnings beat and also outpaced revenue estimates. Though it raised the guidance for full-year sales growth, it tightened the earnings per share forecast.
Big pharmaceutical companies were on the hot seat at Capitol Hill today with CVS Health, Cigna, Prime Therapeutics, Humana, and UnitedHealthcare's OptumRx testifying before the Senate Finance Committee on the rising cost of prescription drugs. Among the topics discussed included rebates paid by drug makers contributing to the high costs and the drug industry's pursuit of profits--all to shift the blame from the pharmaceutical companies to the drug makers. U.S. President Donald Trump has already lambasted the pharmaceutical industry for the rising costs associated with prescription drugs.
In the almost seven years that Johnson & Johnson (NYSE:JNJ) CEO Alex Gorsky has been in the top job, JNJ stock has achieved a cumulative total return of 155.5% (through Feb. 12). Gorsky took charge of the large-cap healthcare company on April 26, 2012. He's managed to deliver an annualized total return of 14.7%.Source: Shutterstock Shareholders must be pleased with their returns. Does that mean Gorsky's earned his pay as CEO?Maybe. Maybe not. InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf we lived our lives in a vacuum, Gorsky's performance would be enough to answer "yes" to the question. However, we don't. Johnson & Johnson, like all publicly traded stocks, have benchmarks to live up to. No, I'm not saying that it has to beat the S&P 500 index and its peers every year, but over the long haul, JNJ stock ought to at least keep up with them. * 10 Best Dividend Stocks to Buy for the Next 10 Months Over the same period, the SPDR S&P 500 ETF (NYSEARCA:SPY) and the iShares US Pharmaceuticals ETF (NYSEARCA:IHE) achieved cumulative total returns of 128.9% and 99.7% respectively. So, in terms of performance, JNJ stock has easily met and exceeded shareholder expectations. From that vantage point, It's easy to how shareholders might view Gorsky's compensation as irrelevant, but it's not. Why?What happens if JNJ stock underperforms over the next seven years relative to the index and its peers? All of a sudden paying a person $29 million a year doesn't seem so smart; especially when you consider that Johnson & Johnson could get a similar result at half that fat paycheck.Big corporations like to throw out the rationalization that they have to provide this level of compensation to remain competitive. It's a bald-faced lie. There are plenty of qualified candidates in the U.S. that could handle the job at half the compensation. I'm sure of it. The truth is, if CEO compensation were an investable stock, anyone who invested in those shares between 1978 and 2017, would be wealthy. "CEO compensation has grown far faster than stock prices or corporate profits. CEO compensation rose by 979% (based on stock options granted) or 1,070% (based on stock options realized) between 1978 and 2017," Fast Company reported in August 2018. "The corresponding 637% growth in the stock market (S&P index) was far lower."You can debate the relevance of these numbers all you want but Alex Gorsky, like most CEOs, is replaceable. How Much Does Gorsky Make?I won't bore you with the details regarding salary, cash bonuses, pension plans, etc. I'm merely going to provide a table that shows how many of Gorsky's stock and option awards have vested since becoming CEO in 2012. You can decide if the largess amassed is worth it. Alex Gorsky's Stock Vested 2013-2017Year Stock Awards Value Today 2017 151,654 $20,345,901 2016 114,875 $15,411,630 2015 63,716 $8,548,139 2014 12,058 $1,617,701 2013 9,981 $1,339,051 2012 20,791 $2,789,321 Total 373,075 $50,051,743Source: SEC Corporate FilingsI guess $50 million doesn't seem like a lot over six years for a CEO of a $360 billion company. And it isn't. However, when you consider there are several candidates at JNJ who could do the job, it's a lot of money going out the door for someone who essentially won the CEO lottery.Oh, and one last thing. * Buy These 5 Stocks to Play the Megatrend of the Century As of fiscal 2017, Gorsky had 2.8 million stock options, both exercisable and unexercisable, at prices between $62 and $116, so they're all in the money. Were he to exercise all of the options at today's stock price, they'd be worth $376 million. Is Gorsky Earning His Pay?As I noted in kicking off this piece, shareholders probably don't care about overpaying Gorsky, given the returns of JNJ stock since he became CEO. However, like America, if you don't speak up about what's wrong with the country, you get what you deserve. Eventually, Johnson & Johnson stock is going to revert to the mean and when it does, Alex Gorsky won't be sitting nearly as pretty. As of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post Is Johnson & Johnson CEO Alex Gorsky Earning His Pay? appeared first on InvestorPlace.
Johnson & Johnson expects its sales growth to slow down this year due to pricing pressures and generic-drug competition for its pharmaceutical division. This has put healthcare ETFs in focus.
The news has put the spotlight on a number of healthcare ETFs, especially biotech and pharma, which could be the best ways for investors to tap the opportunity arising from the BMY-CELG deal.
In the first nine months of 2018, Vanda Pharmaceuticals’ (VNDA) Hetlioz sales grew ~28% YoY to reach $83.4 million from $65.0 million. Fanapt earned revenues of $56.7 million in this period, reflecting ~2% YoY growth. In the third quarter, Hetlioz and Fanapt reported revenues of $29.9 million and $19.2 million, respectively, reflecting ~34% and ~1% YoY growth.
An Overview of Pfizer’s Oncology and Vaccine Business(Continued from Prior Part)Inlyta revenue In the first nine months of this year, Pfizer’s (PFE) Inlyta revenue grew ~12% YoY (year-over-year) to $226.
Healthcare sector-related ETFs appeared sickly Friday as Johnson & Johnson (JNJ) dragged down the segment in response to reports that the company knew for decades that its baby powder contained asbestos. Healthcare stocks retreated after Reuters reported that the pharma giant knew for decades that the cancer-causing asbestos were found in its Baby Powder. In an examination of company memos, internal reports and other confidential documents, Reuters found that J&J known about the presence of trace amounts of asbestos in its products from as early as 1971.
Merck & Co.’s (MRK) Keytruda generated revenues of $1.9 billion in the third quarter, reflecting an ~80% YoY growth and a 13% sequential growth. In the US and international markets, Keytruda generated revenues of $1.1 billion and $780 million, respectively, in the third quarter, compared to $604 million and $442 million, respectively, in the third quarter of 2017, reflecting an ~84% YoY growth and a ~76% YoY growth, respectively.
Johnson & Johnson’s (JNJ) pulmonary hypertension business generated revenue of $656.0 million in the third quarter compared to $632.0 million in the third quarter of 2017, reflecting ~3.8% YoY (year-over-year) growth.
With a contentious midterms election season coming up, many anticipate a split government that could potentially impact the way ETF investors ride the markets ahead. Some expectations point to Democrats winning back the House of Representatives and the Republicans maintaining a narrow hold on the Senate - Republicans currently dominate both chambers. "If the consensus expectation of a divided government turns out to be correct, the most likely political consequences would be an increase in investigations and uncertainty surrounding fiscal deadlines," David Kostin, Goldman's chief U.S. equity strategist, said in a note.
Analysts expect Pfizer’s (PFE) top line to increase ~2.9% to ~$13.5 billion during the third quarter. The company’s EPS is expected to increase to $0.75 in the third quarter—compared to $0.67 in the third quarter of 2017.
In this part, we’ll discuss Pfizer’s (PFE) earnings quality and dividend performance. The above chart compares the changes in Pfizer’s Earnings Quality score since the first quarter of 2017. Pfizer has announced the following dividends during 2018.
Pharmaceutical stocks and sector-related exchange traded funds have enjoyed a great summer and the rally may continue to have legs. Meanwhile, the broader iShares Nasdaq Biotechnology ETF (NASDAQGM: IBB) rose 10.6%. There were no clear catalysts to explain the rally as we did not witness any memorable earnings beats, new clinical trials or large-scale deals, the Wall Street Journal reports.
Johnson & Johnson (NYSE: JNJ), one of the world's largest healthcare companies, has underperformed the broader market in 2018. The company's stock is down 3.66% year to date (YTD), while the Standard and Poor's 500 index (S&P 500) is up roughly 7%. David Katz, chief investment officer at Matrix Asset Advisors, told Reuters, "We are much more upbeat about Johnson & Johnson today than we were six months ago.
Pharmaceutical ETFs, securities publicly traded on stock markets, are designed for investors who do not have the capacity to hold many stocks but are interested in diversifying their pharmaceutical investments. The chart below compares ETFs’ normalized prices in June.