DIKSIA.COM - Johnson & Johnson (JNJ) is one of the world's largest and most diversified healthcare companies, with three segments: pharmaceutical, medical devices and diagnostics, and consumer. The company has a long history of innovation, quality, and social responsibility, and is well-known for its iconic brands such as Tylenol, Band-Aid, Neutrogena, and Listerine. JNJ stock is also a favorite among investors who appreciate its consistent performance, strong fundamentals, and generous dividends.
In this article, we will explore some of the reasons why JNJ stock is a healthy choice for investors who are looking for a reliable and resilient company that can deliver long-term value.
JNJ Stock: A Leader in the Healthcare Sector
One of the main advantages of JNJ stock is its leadership position in the healthcare sector, which is one of the most essential and resilient industries in the world. According to the World Health Organization, global health spending is expected to increase from $8.3 trillion in 2020 to $11.4 trillion in 2025, driven by factors such as aging populations, rising incomes, chronic diseases, and technological advancements. JNJ is well-positioned to capitalize on these trends, as it offers a diversified portfolio of products and services that cater to various needs and markets across the healthcare spectrum.
JNJ's pharmaceutical segment is the largest and most profitable of its three divisions, accounting for about 55% of its total revenue and 70% of its operating income in 2020. The segment focuses on six therapeutic areas: immunology, oncology, neuroscience, infectious diseases, cardiovascular and metabolism, and pulmonary hypertension. JNJ has a robust pipeline of innovative drugs, with 14 new products launched since 2011 and 14 more expected to launch by 2023. Some of its best-selling drugs include Stelara, Imbruvica, Darzalex, and Tremfya, which have strong growth potential and patent protection. JNJ is also a leader in the development of vaccines, as evidenced by its single-shot Covid-19 vaccine, which has been authorized for emergency use in several countries and has shown efficacy against variants.