|Bid||127.57 x 1400|
|Ask||128.49 x 800|
|Day's Range||127.13 - 131.26|
|52 Week Range||121.00 - 148.99|
|Beta (3Y Monthly)||0.72|
|PE Ratio (TTM)||21.21|
|Forward Dividend & Yield||3.80 (2.89%)|
|1y Target Est||N/A|
Johnson & Johnson (NYSE:JNJ) stock is blue chip with a capital B. With its solid dividend and AAA credit rating, there's no denying that JNJ stock is high quality. But can the company's legal issues bring it to its knees?Source: Sundry Photography / Shutterstock.com The likely answer is no. While multi-billion dollar judgements sound scary, the company's sheer size may help insulate it from these issues. Let's take a closer look at JNJ, and see whether the risks outweigh opportunity with Johnson & Johnson stock. What's the Worst That Can Happen?As InvestorPlace contributor Josh Enomoto discussed Aug. 21, JNJ stock has two material legal risks. The first is the company's asbestos-contamination scandal. For decades, Johnson & Johnson allegedly kept quiet about the cancer risks of its baby powder products. Civil litigation has been going on for years. But only recently did federal authorities announce an investigation. Recent civil judgements were for $4.7 billion in July 2018, and $300 million in June 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy on the Dip But JNJ's liability could be much less. As discussed in this Bloomberg article, most product liability judgements are reduced on appeal. But, as Enomoto discussed in his analysis, bad PR from the litigation could taint Johnson & Johnson stock. This scandal has been going on for years. While the story is well-known, it has not dominated the headlines.How about the Oklahoma opioid suit? After years of ignoring the opioid crisis, federal and state authorities are getting their act together. This puts opioid manufacturers in their cross-hairs, including JNJ. The Oklahoma suit alleges JNJ's Janssen Pharmaceuticals unit aggressively marketed opioids. Oklahoma is looking for $17 billion in damages, but JNJ could end up paying significantly less. Previous Oklahoma opioid suits ended with settlements. Purdue Pharma settled for $270 million. Teva Pharmaceuticals (NYSE:TEVA) settled for $85 million. This means that JNJ could avoid a multi-billion dollar judgement. But JNJ is likely not out of the woods just yet. Other states (or the Federal Government) could pursue action.Do these legal risks impact the valuation of JNJ stock? Let's see if shares are selling at a discount (or a premium) to its peers. JNJ Stock Trades at a Fair ValuationJohnson & Johnson currently trades at a forward price-to-earnings (forward P/E) ratio of 14.1. The company's Enterprise Value/EBITDA (EV/EBITDA) is currently 13. Here are the valuations of some of JNJ's competitors in the pharmaceutical space:Bristol-Myers Squibb (NYSE:BMY): Forward P/E of 10, EV/EBITDA of 9.8Eli Lilly (NYSE:LLY): Forward P/E of 16.5, EV/EBITDA of 15.7Merck (NYSE:MRK): Forward P/E of 15.6, EV/EBITDA of 14.1Pfizer (NYSE:PFE): Forward P/E of 15.9, EV/EBITDA of 10.1Based on this peers comparison, Johnson & Johnson stock appears fairly valued. On a forward P/E-basis, JNJ stock trades higher than BMY. On a EV/EBITDA basis, JNJ trades in the middle of the pack. It appears that the recent legal issues have barely impacted the JNJ stock price. Shares are down just about 12% from their 52-week high. It may take more to sink a stock with a $346.4 billion market cap.JNJ stock may be attractive to dividend investors. While the 2.91% yield is not particularly high, JNJ is a dividend aristocrat. The company has raised the dividend 57 years in a row. But investors should be cautious given the legal risks. While JNJ may be on the hook for much less than anticipated, it's tough to predict litigation outcomes. Not a Big Risk, But Not a Big OpportunityJohnson & Johnson will likely weather the litigation storm. The talcum powder judgement sound high, but the company could appeal and reduce the final amount. The Oklahoma opioid case also features an eye-popping number. Given the Purdue and Teva settlements, a multi-billion dollar verdict would be surprising.However, the stock offers limited upside. Shares appear fairly valued relative to peers. The company's dividend aristocrat status is a strong selling point. But for short-term plays, better opportunities lie elsewhere. If the legal issues result in a short-term hit to JNJ's stock price, investors may find opportunity. Keep Johnson & Johnson on your radar, and consider a position if the stock sees a material drop in price.As of this writing, Thomas Niel did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Will Lawsuits Sink Johnson & Johnson Stock? appeared first on InvestorPlace.
Five pharmaceutical companies said on Friday they have filed a complaint in a Canadian court challenging the constitutionality of new Canadian regulations meant to lower patented drug prices, setting up a fight with the federal government ahead of an Oct. 21 election. The complaint was filed in Quebec's Superior Court by the Canadian arms of U.S.-based Merck & Co and Johnson & Johnson's Janssen Inc, Germany's Bayer AG and Boehringer Ingelheim, and France's Servier Inc. The filing ratchets up a confrontation between the pharmaceutical industry and the Liberal government of Prime Minister Justin Trudeau, which has vowed to make affordability a key plank of its election campaign.
J&J (JNJ) is facing several litigation in multiple states related to abuse of its opioid-based drugs. A ruling is expected on Aug 26 in a trial filed by the state of Oklahoma.
FDA approves AbbVie's (ABBV) upadacitinib to be marketed as Rinvoq. Bayer (BAYRY) is set to divest its Animal Health unit to Elanco for $7.6 billion in a cash-and-stock deal.
Glaxo (GSK) seeks approval for its anemia candidate, daprodustat, in Japan. Moreover, once every two months administration of cabotegravir and rilpivirine shows non-inferiority to once a month administration in HIV patients in a clinical study.
Johnson & Johnson (NYSE:JNJ) is about to trade ex-dividend in the next 3 days. This means that investors who purchase...
The greenback has been in rally mode since late June, and now the U.S. Dollar Index is approaching multi-year highs. The strong dollar will create winners and losers. Which stocks are likely to suffer a negative impact from the strong dollar?
Endo International and Allergan could avoid going to trial in a landmark case out of Ohio accusing pharmaceutical companies of marketing practices that preceded the opioid epidemic.
An Oklahoma judge will rule on Monday on whether Johnson & Johnson should be held liable in a lawsuit by the state's attorney general who argues the drugmaker should be forced to pay $17 billion for fueling the opioid epidemic. Judge Thad Balkman in Norman, Oklahoma, will deliver his decision from the bench after presiding over the first trial to result from thousands of lawsuits by state and local governments against opioid manufacturers and distributors, the court said. Opioids were involved in almost 400,000 overdose deaths from 1999 to 2017, according to the U.S. Centers for Disease Control and Prevention.
With the markets still digesting the events of last week, multiple companies are riding choppy waters. However, few names have as many question marks as Johnson & Johnson (NYSE:JNJ) stock. A household staple and an American icon, Johnson & Johnson has suffered from severe scandals. Even though JNJ stock has calmed down in recent sessions, investors rightfully remain skeptical about JNJ.Source: Sundry Photography / Shutterstock.com Obviously, the company's most pressing controversy is its asbestos-contamination scandal. In December 2018, the company lost a motion "to reverse a jury verdict that awarded $4.69 billion to women who blamed their ovarian cancer on asbestos in the company's baby powder and other talc products," according to The New York Times. Immediately, the devastating news cratered Johnson & Johnson stock.Worse yet, the company's PR crisis was only beginning. According to court documents, Johnson & Johnson had known for decades that its talc-based products were possibly contaminated with asbestos. However, management decided to keep that information from leaking to the public. Naturally, the image of one of America's most trusted brands turning on their customers badly hurt JNJ stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill However, JNJ stock has stabilized in recent weeks.Still, the weight of the asbestos scandal has loomed over JNJ stock. Several lawsuits related to the matter still could impose meaningful liabilities on Johnson & Johnson stock. Furthermore, the diversified pharmaceutical giant must deal with a trial in Oklahoma. The state alleges that JNJ played a significant role in America's widespread opioid crisis.Can Johnson & Johnson stock finally catch a break? A Dark Cloud Hangs Over JNJ StockConsidering how terrible these controversies are, it's tempting to say that Johnson & Johnson stock offers no redeemable value. It's not just the scandal itself, which again is horrific, shameful, and perhaps unforgivable; additionally, the company's good reputation has evaporated almost instantaneously.Back in 2015, Interbrand recognized Johnson & Johnson as one of the world's top brands. At that time, the brand consultancy firm declared that the company "evokes some of the most cherished childhood experiences." That was one of many reasons to buy JNJ stock: another was that the company enjoyed multiple, non-cyclical revenue channels.But over the past year or so, the organization has nuked its family-friendly image. Now, when people see Johnson & Johnson, they see the worst thing possible: an innocent person dying of cancer.If that wasn't enough, the owners of Johnson & Johnson stock will face a dark cloud that permeates throughout the brand. According to the Harvard Business Review, corporate scandals have a long shelf life.For instance, automaker Volkswagen was beset by a massive controversy several years ago. In order to meet government emissions regulations, it essentially hacked monitoring components to produce falsified data. The scandal took a very long time to recover from, and it is still negatively affecting the company's reputation.And in VW's case, only emissions stats were involved. In JNJ's scandal, people died. Undoubtedly, the scandal will prevent many people from touching JNJ stock. Johnson & Johnson Stock Is Only Compelling for SpeculatorsFor conservative investors, the most reasonable action is readily apparent: they should not jump into JNJ stock.As I mentioned above, the asbestos scandal is both atrocious and extensive. Moreover, in many cases, it takes companies a long time to recover from controversies. Also, you should realize that there are other diversified pharmaceutical firms that don't have the baggage of Johnson & Johnson stock.But if you're a risk-tolerant speculator, JNJ stock might have some attraction for you. First, scandals don't always result in indefinite doom. For a prime example, look at Equifax (NYSE:EFX). Although the credit-monitoring agency compromised millions of Americans' private data, EFX stock eventually recovered. In fact, EFX is one of the top-performing equities of 2019.Second, JNJ stock has done well from a technical standpoint, despite the obvious headwinds it's facing. It may not hit all-time highs anytime soon. However, the shares are still riding a long-term bullish trend channel, which is quite surprising, given the scandal's grievous nature.As a cautionary note, I must stress that JNJ stock is not for the faint of heart. However, its steep discount provides an attractive entry point into the shares of this solid (other than its scandal) and relevant company.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Johnson & Johnson Stock Is a Gamble, but an Interesting One appeared first on InvestorPlace.
Even under normal circumstances, the healthcare stocks are prone to headline risk. Case in point, what happened to Sarepta (NASDAQ:SRPT) last night when the stock fell 15% on FDA news. Add to it that the U.S. is approaching another round of elections, and it makes healthcare stocks even riskier than normal -- through no fault of their own.In late June, I discussed three healthcare stocks to buy and for the most part the trades paid quickly. But since then, the stock markets in general had several mini corrections. We had fear flashes over geopolitical headlines, China's currency crisis and most recently, a bond-yield crash. So it's only fair to revisit those names again as the dust is settling. * 10 Undervalued Stocks With Breakout Potential So today we are discussing United Health (NYSE:UNH), Pfizer (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ) stocks. I'll start with my conclusion first. All three are still good stocks to buy at these levels -- but for different reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Johnson & Johnson (JNJ)Johnson & Johnson is a long-time American success story. They are a global household name and their products are ubiquitous. From a valuation perspective, JNJ stock is relatively cheap because it has a modest price-to-earnings (P/E) ratio and pays a decent dividend.JNJ could be cheaper, but this is a management team that has proven itself through thousands of headline worries. The current headlines are nothing new for JNJ. So they have nothing but a temporary effect on the overall trajectory of JNJ stock.That said, Johnson & Johnson is still a buy here for anyone who's looking to add this sector to their portfolio. It is important to note that the company is probably past its talcum-powder headline risk by now even though it's not officially resolved. So I wouldn't take a full position all at once. Alternatively, I can sell puts below the current JNJ stock price to generate income from the intrinsic value of JNJ stock this way I don't even need a rally to win. United Health (UNH)United Health stock has performed the best of the three healthcare stocks since my last write up. It had an immediate 9% spike so from a trading perspective that was good timing.In addition, the overall thesis on UNH stock since then has not changed. It is still trailing the S&P 500 year-to-date. But over the last five years, UNH stock is up 180%, which is four times better than the S&P.After the July spike, UNH stock price faded the rally, but is has fallen into the same support zone from which it broke out. So this is the opportunity for the bulls to rinse-and-repeat another run.Technically speaking, UNH range is tightening into a point, so a move is coming in either direction. It is setting lower-highs and higher-lows at a point that coincides with the 12 month point-of- control for the stock. This is significant because this is literally where bulls and bears have agreed the most.So they will fight it out hard at this price once more and create support. As long as UNH stock holds above $240 per share, the bulls have a shot at retesting $260 or higher. There will be resistance along the way perhaps at $255 and most certainly at $256.50. * 10 Mid-Cap Dividend Stocks to Buy Now Conversely, there is the threat that the bears are able to break below $240 per share. If that happens, it could turn into a bearish head-and-shoulder pattern to target $224 per share. This is not a forecast but it's definitely a scenario that exists currently below UNH stock price. Pfizer (PFE)Pfizer stock was once bulletproof, but it can't even find footing of late. But maybe this time will be different. From current levels Pfizer stock can mount a revenge rally. Clearly so far, its stock performance metrics are poor so this has a lot of hopium tied to it.So this is definitely a tactical trade, and it should have a hard stop below $34 per share. This inadvertently is also a long-term five-year-old pivot point that also happens to be the point of control for that same period. So mathematically speaking, this is where bulls and bears love to disagree. This congestion should act as support.Simply put, if I buy PFE stock here, I literally have more upside potential than downside risk based on the 5-year price history. Fundamentally speaking, PFE is not expensive selling at 17 P/E and three times book. Yes, it can get cheaper, but this trade set up is tactical, so fundamentals don't matter as much for the short term.Longer-term, the Pfizer management team needs to re-earn Wall Street trust so that trades like this one would be with conviction. Maybe then the bulls will be able to drag the PFE stock out of the dumps and back in line with the overall stock market or at least its sector.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Healthcare Stocks to Trade: UNH, JNJ and PFE appeared first on InvestorPlace.
Health Canada has granted biopharmaceutical researcher and cannabis producer Avicanna Inc (TSX: AVCN) with a research license that will allow the company to perform research and intellectual property development on cannabinoids at its facility in the MaRS Discovery District in Toronto. It's a cannabis license, but for research and pharmaceutical development," CEO Aras Azadian told Benzinga in an interview.
The Zacks Analyst Blog Highlights: Berkshire Hathaway, Johnson & Johnson, NVIDIA, Booking and Fidelity
The St. Pete manufacturer was also issued a positive outlook on its new $1.8 billion commercial paper program.