Johnson & Johnson's New High

I really like the stock of Johnson & Johnson (JNJ). Few companies have been as stable long-term winners as JNJ. A few months ago, I said it was a good buy, especially under $60. Just recently, the shares finally took out their 2005 high. The company reported good earnings again last month (Call Transcript). JNJ now sees 2008 EPS coming in at $4.45 to $4.50 which is almost certainly too low.

Here’s a look at JNJ’s stock (blue line, left scale) and earnings (gold line, right scale with EPS projection in red). The two lines are scaled at 16-to-1.

Disclosure: None