Dow Today: Johnson & Johnson (JNJ) Lower

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading down 48.0 points (-0.4%) at 13,535 as of Tuesday, Oct 9, 2012, 10:35 a.m. ET. During this time, 122.7 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 580.7 million. The NYSE advances/declines ratio sits at 1,087 issues advancing vs. 1,712 declining with 134 unchanged.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Holding back the Dow today is Johnson & Johnson (NYSE: JNJ), which is lagging the broader Dow index with a 90-cent decline (-1.3%) bringing the stock to $68.54. This single loss is lowering the Dow Jones Industrial Average by 6.81 points or roughly accounting for 14.2% of the Dow's overall loss. Volume for Johnson & Johnson currently sits at 4.3 million shares traded vs. an average daily trading volume of 11 million shares.

Johnson & Johnson has a market cap of $192.03 billion and is part of the health care sector and drugs industry. Shares are up 5.9% year to date as of Monday's close. The stock's dividend yield sits at 3.5%.

Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has a P/E ratio of 22.1, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Johnson & Johnson as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.