NEW YORK (TheStreet) -- Johnson & Johnson (JNJ) reports earnings Tuesday. TheStreet's Jim Cramer told Brittany Umar it is one of his favorite stocks and a holding in the Action Alerts PLUS portfolio he co-manages.

Cramer said CEO Alex Gorsky has revolutionized the company in a very short period of time, with potential growth of 8%. Most big pharmaceutical companies have growth of 3% to 5%.

Cramer said Johnson & Johnson has many praiseworthy qualities: new products, possible spinoffs, a 3% dividend yield and a top-notch balance sheet. However, the company's fast-growing segments are buried by its slow-growing consumer products segment.

After pulling back from $94, Cramer advised that if investors can get the stock at $85, they should "pull the trigger."

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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