NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Johnson & Johnson's (JNJ) deal to sell its Ortho-Clinical Diagnostics business to The Carlyle Group for $4 billion will lead to a buyback of "a huge amount of stock."
Cramer says Johnson & Johnson CEO Alex Gorsky set expectations very low for the quarter and this deal was done perfectly so that the company can announce in conjunction with its quarterly results a buyback that would "dwarf" Merck (MRK) and Pfizer (PFE). The stock is rising, but Cramer is not selling yet because he feels the increase will continue, the stock will surpass $100 and the buyback will shock people.
If one is looking to buy, Cramer says one could wait until Friday because a strong employment number could bring the drug stocks down; but otherwise, he believes Johnson & Johnson is not coming down.
Separately, TheStreet Ratings team rates JOHNSON & JOHNSON as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOHNSON & JOHNSON (JNJ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."