Johnson and Johnson - JNJ-

What are peoples thoughts on JNJ right now, particularly its current price. I have been wanting to add to my JNJ position in recent weeks but its run up has been great and posted great earnings, even last day or so wobble hasn’t knocked much off it. Often I add to stocks as they increase and JNJ I am almost happy to add at any valuation it has had due to being such a long term hold and solid company.

What are peoples thoughts and how are you looking to add to your JNJ and what price level.

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It interested me too after looking through the dividend aristocrats. I thought it looked like a good long term pick and decent value for a well known brand. Bought some yesterday.

I have some, and it’s still in my long term value pie

I would not necessarily trust the wall street analysis app.
For a fair price of around 243 USD, Johnson and Johnson would be at a Price to Earnings ratio of well over 30, which for a company that has passed its peak growing phase is quite a lot. I guess the only way to achieve that would be to fully utilise its balance sheet in acquisitions, which would on the other hand increase its debt even more and risk its AAA bond status (deemed to be very safe).

I bought a third of what I intended to buy a few months ago, and since then I have been waiting for it to come down, as it is currently quite high for my liking. I guess it might not happen, considering the market conditions (low interest rates, over-activity in market, safe company due to sector and safe debt) it might just continue to rise.

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Yes the current price is not undervalued, not necessarily overvalued either, just in the upper end of fair value maybe spilling into overvalued but not sure. As I havent added to it recently I will look for anther good point if not will just go with it at time when putting in new funds, its a forever hold after all.


Remember the difference in price and value.

The price isn’t really a consideration providing you have enough to pay for it. The value is whether you think it will be better than other investments, I’m pretty happy it’s in my portfolio.

I believe the fair value also takes into consideration the typical metrics for the sector.

But you’re right it’s still not a low PE ratio right now.

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It isn’t necessarily undervalued, but since 1992 it has risen from $6 to $167. It has also maintained or increased dividends for 57 years, which is a bonus. So like hbomb said, it is a buy and hold for me.

Considering 29 years, that is an anual growth of 12% :slight_smile: .

Sure, it’s not a growth stock but it’s stable. Reinvest the dividends and over time it should grow.

Jnj was too stable for me so I moved over to GSK to keep funds in pharma and the dividend and potential gains are nice. Still lacking something for either to see growth like AZ and others have.

Based on some historical averages, 142-164$ should be fair range for forward(2022) PE 15-17.5.

So it is close to this range due to 18% growth projected for 2021, probably good buy on dip.

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I’m not great the maths side of things. Can you explain to me how you got to this percentage? Thanks!

They make great joint replacements with cobalt. Another shambles the FDA what a joke and beyond corrupt. Gold standard, comical.

Sorry this doesn’t add to your thread but some of things they’ve done and do is terrible.

Thanks thats interesting, to look at the historical PE, wheres the best place to access that info rather than me manually finding historical earnings/EPS and working it out compared to price at the time.

Well I use paid services. 15$ for premium lite.

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Same results using trading view £140 for the year professional account

I see I can check the P/E ratio for JNJ for up to 5 years on free trading view, nice. Oddly theres a weird jump in the chart in 2018 for most of the year where it jumps to 300+ PE?

Most likely us gaap adjustment. You would need to pull the accounts and strip out the items they maybe classed as an exceptional item.

Then perform a manual recalc.

Pre-market looking like a 3-4% drop on some vaccine news. Tempting.

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