Shares of Johnson & Johnson (NYSE:JNJ) at 58 are cheap relative to both the pharmaceutical sector and the market as a whole. JNJ isn't flashy, but it is very profitable with an S&P earnings quality grade of A+, and consistently high 29% return on equity.
Normally when I recommend a stock, I make a detailed investment case for it. With Johnson & Johnson (JNJ) the stock almost sells itself.
JNJ, as a senior pharmaceutical company, is largely immune from economic cycles and has deep competitive advantages over others due to its large financial resources, scale of operations and worldwide sales force. Good stuff.
JNJ 1-yr chart:
Related: More opinion and analysis of Johnson & Johnson