Jim Cramer Recommends Johnson & Johnson: No Major Patent Expirations
Jim Cramer praised Johnson & Johnson on Mad Money, highlighting its billion-dollar drugs and growing businesses with no major patent expirations, making it an opportunity in an out-of-favor sector.
Financial commentator Jim Cramer, during an episode of Mad Money on CNBC, recommended Johnson & Johnson (NYSE:JNJ) as an investment opportunity in a currently out-of-favor sector. Cramer emphasized that the company has billion-dollar drugs and growing businesses, with no major patent expirations on the horizon.
Recommendation Details
Cramer said: "So I'm going to do something completely out of favor and recommend one that we're buying for the Charitable Trust gingerly." He noted that Johnson & Johnson has a strong portfolio of drugs generating billions in revenue, along with its medical devices and consumer products businesses.
Context
Cramer's recommendation comes at a time when many investors are avoiding large healthcare stocks due to pricing and regulatory concerns. However, Cramer believes Johnson & Johnson's balance sheet strength and pipeline depth give it a competitive edge.
What It Means for Investors
Cramer's comments highlight that Johnson & Johnson may be a value opportunity for investors seeking defensive stocks with strong fundamentals, especially given the absence of major patent expiration risks that threaten other pharmaceutical companies' revenues.
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