Dow Today: Johnson & Johnson (JNJ) Higher

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 up 96 points (+0.7%) at 13,424 as of Monday, Oct 15, 2012, 12:35 p.m. ET. During this time, 292.7 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 574.5 million. The NYSE advances/declines ratio sits at 1,878 issues advancing vs. 1,018 declining with 148 unchanged.
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The Dow component leading the way higher looks to be Johnson & Johnson (NYSE: JNJ), which is sporting an 88-cent gain (+1.3%) bringing the stock to $68.85. This single gain is lifting the Dow Jones Industrial Average by 6.66 points or roughly accounting for 6.9% of the Dow's overall gain. Volume for Johnson & Johnson currently sits at 6.7 million shares traded vs. an average daily trading volume of 10.7 million shares.

Johnson & Johnson has a market cap of $187.4 billion and is part of the health care sector and drugs industry. Shares are up 3.6% year to date as of Friday's close. The stock's dividend yield sits at 3.6%.

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 21.6, 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.

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