Johnson & Johnson (JNJ): Today's Featured Drugs Winner

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.

Johnson & Johnson ( JNJ) pushed the Drugs industry higher today making it today's featured drugs winner. The industry as a whole closed the day up 0.6%. By the end of trading, Johnson & Johnson rose 95 cents (1.4%) to $69.55 on average volume. Throughout the day, 13.6 million shares of Johnson & Johnson exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in a price between $69.02-$69.80 after having opened the day at $69.30 as compared to the previous trading day's close of $68.60. Other companies within the Drugs industry that increased today were: Ampio Pharmaceuticals ( AMPE), up 11.5%, Aegerion Pharmaceuticals ( AEGR), up 9.7%, KYTHERA Biopharmaceuticals ( KYTH), up 8.4%, and Seattle Genetics ( SGEN), up 7.6%.
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Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Johnson & Johnson has a market cap of $187.4 billion and is part of the health care sector. 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. Shares are up 4.6% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Johnson & Johnson a buy, no analysts rate it a sell, and eight rate it a hold.

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.

On the negative front, Isis Pharmaceuticals ( ISIS), down 21.9%, Somaxon Pharmaceuticals ( SOMX), down 11.6%, Prima Biomed ( PBMD), down 10.9%, and Idera Pharmaceuticals ( IDRA), down 9%, were all laggards within the drugs industry with Forest Laboratories ( FRX) being today's drugs industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).

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