Thursday, February 3, 2011

Stock Idea: Johnson & Johnson (JNJ, $60.62)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at Please visit!)

Johnson & Johnson
(JNJ) produces and markets healthcare products throughout the world. The PE is 12.6, the beta is .7, the dividend is $2.16 per share and yields 3.56%. Projected consensus eps growth is 1.7%, 5.8% and 9.4% for the fiscal years 2011 through 2013.

The stock is likely to trade $60 to $64 in the near-term, with the next move likely being up to $66. I would buy this stock if I wanted a blue chip stock with a good dividend, but the growth will not be exciting, just slow and steady. If I've owned it for a while and I'm getting antsy, I'd sell at $64 and move on.


The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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