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 2.0%. By the end of trading, Johnson & Johnson rose $1.31 (1.6%) to $84.49 on average volume. Throughout the day, 10,615,371 shares of Johnson & Johnson exchanged hands as compared to its average daily volume of 9,855,000 shares. The stock ranged in a price between $83.47-$84.57 after having opened the day at $83.51 as compared to the previous trading day's close of $83.18. Other companies within the Drugs industry that increased today were: Vertex Pharmaceuticals ( VRTX), up 61.9%, Catalyst Pharmaceutical Partners ( CPRX), up 56.7%, Anacor Pharmaceuticals ( ANAC), up 13.6% and Ligand Pharmaceuticals ( LGND), up 10.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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. Johnson & Johnson has a market cap of $234.7 billion and is part of the health care sector. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Thursday.

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.

On the negative front, Aoxing Pharmaceutical Company ( AXN), down 17.6%, Atossa Genetics ( ATOS), down 10.1%, Zalicus ( ZLCS), down 5.6% and Celsion Corporation ( CLSN), down 5.4% , were all laggards within the drugs industry with Sarepta Therapeutics ( SRPT) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null