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 72 points (+0.5%) at 14,671 as of Tuesday, Apr 16, 2013, 10:35 a.m. ET. During this time, 142 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 598.7 million. The NYSE advances/declines ratio sits at 2,251 issues advancing vs. 607 declining with 102 unchanged.
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The Dow component leading the way higher looks to be Johnson & Johnson (NYSE: JNJ), which is sporting a $1.34 gain (+1.6%) bringing the stock to $83.05. This single gain is lifting the Dow Jones Industrial Average by 10.14 points or roughly accounting for 14.1% of the Dow's overall gain. Volume for Johnson & Johnson currently sits at 3.9 million shares traded vs. an average daily trading volume of 9.7 million shares.

Johnson & Johnson has a market cap of $231.43 billion and is part of the health care sector and drugs industry. Shares are up 16.6% year to date as of Monday's close. The stock's dividend yield sits at 2.9%.

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 operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The company has a P/E ratio of 21.4, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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