Analyst not buying weak J&J guidance


Lower today amid a disappointing full year outlook, Johnson & Johnson (JNJ -1.7%) is a buy on the dip says RBC's Glen Novarro. The weak early-year guidance sets management up to beat and raise throughout 2014. "We continue to recommend [J&J] based on strong growth in pharmaceuticals and under-appreciated operating margins."

Earlier: Management guides to full-year EPS of $5.75-$5.85 vs. consensus $5.86.

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Comments (7)
  • ARG1
    , contributor
    Comments (1607) | Send Message
     
    They had an exceptional quarter! Most of the good CEOs are guiding downwards so that expectations don't get over exuberant. Great company, great CEO, they will have another great quarter, operating on all cylinders!
    21 Jan 2014, 11:39 AM Reply Like
  • pgilgan
    , contributor
    Comments (12) | Send Message
     
    I agree, JNJ is playing it perfectly. They down play the rest of 2014 then have outstanding quarters and more than beat, they crush analyst estimates!! Great buying opportunity.
    21 Jan 2014, 02:32 PM Reply Like
  • zoralsurgeon
    , contributor
    Comments (290) | Send Message
     
    Young DGI waiting to start a position in JNJ.. thinking today may be a decent time.
    21 Jan 2014, 11:54 AM Reply Like
  • tomlos
    , contributor
    Comments (1297) | Send Message
     
    I started my position at $68 and as a longterm DGI, this is an amazing company. Analysts don't want to buy JNJ, fine I will gladly scoop up more.
    21 Jan 2014, 11:57 AM Reply Like
  • Eweball
    , contributor
    Comments (65) | Send Message
     
    Sell-off in JNJ is sign of classic portfolio manager inexperience plus day trader mentality. Buy on the dips.
    21 Jan 2014, 12:04 PM Reply Like
  • tampabay
    , contributor
    Comments (439) | Send Message
     
    Did somebody say that market(s) were Rational, one of the best Co's in the world turns in a Good 4th Q and stock price goes down 2%....give me one more down day...please...close to $90..back up the truck....Ditto for VZ
    21 Jan 2014, 01:21 PM Reply Like
  • Henry Miles
    , contributor
    Comments (949) | Send Message
     
    I own and am happy with JNJ but it is fully priced now.
    21 Jan 2014, 01:47 PM Reply Like
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