NEW YORK ( TheStreet) -- Johnson & Johnson ( JNJ) will report second-quarter earnings results on Tuesday. Although the company has met some very important operational challenges recently, including its acquisition of Aragon, Johnson & Johnson's valuation is the only thing preventing me from falling in love with the stock.As a value investor, I can't discount that there is plenty of long-term potential in Johnson & Johnson. I think this goes without saying. But given the fact that the stock has already posted 30% gains for the year to date, rivals including Abbott Laboratories ( ABT), Pfizer ( PFE) and Novartis ( NVS) appear a bit more attractive in the near term, if for no other reason than the fact that they have to catch up to Johnson & Johnson. Compared to Johnson & Johnson, their relative operational performance have matched up pretty well. (Shares of Johnson and Johnson were trading for a little more than $90 Monday morning.) Along similar lines, although Johnson & Johnson should continue to put up decent growth numbers (on a relative basis), the company's first-quarter results (reported in April) revealed some struggles with leverage. It remains to be seen, though, to what extent the Aragon acquisition can help J&J reverse its margin struggles. Until this is known, absent better competitive leverage, I can't in good conscious recommend the stock.