Investors may be interested in Johnson & Johnson, a pharmaceutical company.
Johnson & Johnson, with its robust pipeline and sales that lead the industry, is poised for a successful bid to join the elite trillion-dollar club in the coming decade.
Investors have become fond of Eli Lilly, mainly because it dominates the obesity sector. This is a market that will grow with a CAGR (compound annual growth rate) of 43.73 percent over the next 10 years.
Eli Lilly stock may not be as attractive to those looking for new investment opportunities, given its high price-to earnings (P/E ratio) of more than 40.
Investors may want to consider other pharmaceutical companies that have strong fundamentals but are not priced too high.
Johnson & Johnson is one such stock. This pharmaceutical giant has outperformed all its rivals in 2023.
Johnson & Johnson beats its competitors
Johnson & Johnson, despite not getting as much press as its competitors, led the industry in terms of sales with $85 Billion last year. It surpassed its nearest rival Roche by a staggering 30%.
The company is able to continue its position of leadership in the pharmaceutical industry with this strong performance.
Johnson & Johnson is a leader in pharmaceutical innovation, and its drug pipeline is one of the strongest.
The pipeline can help mitigate the concerns of the company about its upcoming patents expiring on key products. It also ensures that future revenues will be steady.
Johnson & Johnson also offers a 3.07% dividend yield, which provides investors with a steady income stream amid fears about an economic downturn.
JNJ is currently trading at a discounted price
Johnson & Johnson’s valuation is what makes it so attractive at the moment.
Stocks are currently trading with historically low multiples. This includes the price to earnings, free cash flow and enterprise value to EBITDA.
The undervaluation of this stock presents an opportunity to long-term investors looking for strong value stocks.
Johnson & Johnson has a market capitalization of just $400 billion, and the expected growth rate is only 1%. However, its strong fundamentals make it a candidate to join the trillion dollar club within the next decade.
Johnson & Johnson is a good investment, even if it doesn’t offer quick returns. Its focus on stability and growth over the long term makes this a great choice for investors who value their money.
Wall Street analysts have also expressed a positive outlook for Johnson & Johnson. Cantor Fitzgerald analysts set the price target at $215, a new Street high. This suggests that Johnson & Johnson could rise by over 30%.
This article Forget Eli Lilly, Why Johnson & Johnson Could Be the Next Trillion-Dollar Pharma Stock appeared first on The ICD
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