Morningstar Rating

Stock Research and Analysis

by Damien Conover, CFA

Bulls Say

Johnson & Johnson faces few major patent losses over the next five years.
Diverse health-care segments insulate the company from downturns in the economy, offering a defensive growth opportunity and a stable dividend.
Several of J&J's key drugs are specialty drugs, which tend to carry strong pricing power. Read more 

Bears Say

Product recalls and manufacturing issues in the consumer business could dent J&J's strong brand name in a segment where brand recognition is important in maintaining market share.
Potential legal action regarding product recalls for hip and knee replacements along with several consumer products could hurt the company's reputation and cost billions of dollars.
Several of J&J's key drugs are facing increasing competition, which should slow the growth rate of the drug division. Read more 


Overall, we view the stewardship at J&J as relatively standard. While the firm has an excellent record of making sound capital deployment decisions as well as consistently generating returns on invested capital above the cost of capital, major recalls   Read more 


Johnson & Johnson is the world's largest and most diverse health-care company. Three divisions make up the company: pharmaceutical, medical devices and diagnostics,   Read more 

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