Johnson & Johnson Could Benefit From Tax Reform

Johnson & Johnson (JNJ) - Get Report is optimistic that potential tax reform initiatives from President-elect Donald Trump could enact will be beneficial for the company, CEO Alex Gorsky told attendees of the J.P. Morgan Healthcare Conference in San Francisco.

There is some anticipation that Trump and the Republican-controlled Congress could make repatriating offshore profits more cost effective by changing tax laws or granting a tax holiday, freeing up cash for companies like Johnson & Johnson to acquire other U.S.-based players.

Shares of J&J are down more than 5% over the past year compared to the S&P 500, which is up more than 6%.