Investors Should Beware of Chasing Hot Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy JNJ?
Source: CNBC
- Market Warning: CNBC's Jim Cramer cautions that investors chasing 'parabolic' moves often face significant losses, advocating instead for overlooked stocks as better investment opportunities.
- Healthcare Stock Investment: Despite the healthcare sector being the worst performer in the S&P 500, Cramer purchased shares of Johnson & Johnson through his Charitable Trust, emphasizing that buying quality companies during price declines is a rare opportunity.
- Fundamental Analysis: Cramer believes that recent weakness in J&J's stock is largely driven by 'noise' related to talc lawsuits, overshadowing significant developments like new drug approvals and strategic business changes, highlighting short-sighted market sentiment.
- Portfolio Strategy: Cramer stresses the importance of maintaining a balance between hot and cold stocks in an investment portfolio to mitigate the risk of market leaders quickly losing favor, advising against an over-concentration in technology stocks to avoid losses.
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 230.650
Low
190.00
Averages
218.50
High
240.00
Current: 230.650
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-Term Efficacy Data: Johnson & Johnson reports that Nipocalimab maintains disease control for over two years in generalized myasthenia gravis patients, indicating its potential as a durable treatment option that could significantly enhance patient quality of life.
- Clinical Trial Results: In the Phase 3 Vivacity-MG3 study, patients tracked for up to 120 weeks showed consistent improvements in muscle strength and daily living scores, with nearly one-third achieving sustained minimal symptom expression (MSE), highlighting the treatment's effectiveness.
- Side Effects and Safety: More than half of participants reduced corticosteroid use, with no unexpected safety concerns reported; common side effects included muscle spasms and peripheral swelling, demonstrating Nipocalimab's favorable tolerability profile.
- Future Research Directions: Nipocalimab works by blocking the neonatal Fc receptor (FcRn) to lower harmful lgG antibodies, and is being studied in other autoimmune and maternal-fetal conditions, having received multiple regulatory designations including FDA Fast Track and Breakthrough Therapy status.
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Strategic Move: This acquisition is part of Johnson & Johnson's strategy to expand its portfolio in the medical sector.
Market Impact: The deal is expected to enhance Johnson & Johnson's capabilities and offerings in the healthcare market.
Future Prospects: The acquisition may lead to new innovations and improvements in medical technologies under Johnson & Johnson's umbrella.
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- Technological Advantage: Atraverse's HOTWIRE Transseptal Access System, which has been FDA-cleared, has already been utilized in approximately 3,000 medical procedures, highlighting its critical role in atrial fibrillation ablation and enhancing J&J's technological competitiveness in this field.
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- Financial Details Missing: While the financial terms of the deal were not disclosed, J&J's strategic acquisition underscores its ongoing investment and commitment to the cardiac health sector, aiming to meet the growing medical demand.
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- J&J and its Deal: Johnson & Johnson is involved in a deal that has not disclosed its terms publicly.
- Focus on Transparency: The lack of disclosure raises questions about transparency in corporate agreements.
See More
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- CVS Health's Market Advantage: Cramer highlighted CVS Health's benefits from a changing competitive landscape, as rivals like Rite Aid disappear and Walgreens scales back, allowing CVS to effectively increase market share through its insurance arm Aetna and numerous retail locations.
- Cardinal Health's Transformation: Cramer noted that Cardinal Health has been unfairly punished without clear reason, yet the company is transitioning from a traditional drug distributor to higher-growth services, particularly in supporting specialty medical practices, showcasing future growth potential.
- Johnson & Johnson's Strong Foundation: Cramer emphasized Johnson & Johnson's robust balance sheet and pipeline of potential blockbuster drugs, coupled with CEO Stephen Hemsley's return, which has bolstered market confidence in its ability to sustain growth.
See More
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- Market Opportunity: Jim Cramer highlighted that despite the S&P 500 and Nasdaq hitting new highs, healthcare stocks are undervalued due to solid fundamentals, suggesting investors focus on these overlooked areas for portfolio diversification.
- CVS Health's Competitive Edge: Cramer emphasized that CVS Health is benefiting from a changing competitive landscape, as rivals like Rite Aid disappear and Walgreens scales back, positioning CVS to capture market share with its insurance arm Aetna and extensive retail locations.
- Cardinal Health's Transformation: Cramer noted that Cardinal Health has been unfairly punished without clear reasons, but the company is shifting from its traditional drug distribution role to higher-growth services, particularly in supporting specialty medical practices.
- Johnson & Johnson's Strong Outlook: Cramer pointed out Johnson & Johnson's robust balance sheet and potential blockbuster pipeline, while the return of CEO Stephen Hemsley has stabilized UnitedHealth Group and restored confidence in its growth trajectory.
See More
Johnson & Johnson Reports Long-Term Efficacy of Nipocalimab in Myasthenia Gravis
- Long-Term Efficacy Data: Johnson & Johnson reports that Nipocalimab maintains disease control for over two years in generalized myasthenia gravis patients, indicating its potential as a durable treatment option that could significantly enhance patient quality of life.
- Clinical Trial Results: In the Phase 3 Vivacity-MG3 study, patients tracked for up to 120 weeks showed consistent improvements in muscle strength and daily living scores, with nearly one-third achieving sustained minimal symptom expression (MSE), highlighting the treatment's effectiveness.
- Side Effects and Safety: More than half of participants reduced corticosteroid use, with no unexpected safety concerns reported; common side effects included muscle spasms and peripheral swelling, demonstrating Nipocalimab's favorable tolerability profile.
- Future Research Directions: Nipocalimab works by blocking the neonatal Fc receptor (FcRn) to lower harmful lgG antibodies, and is being studied in other autoimmune and maternal-fetal conditions, having received multiple regulatory designations including FDA Fast Track and Breakthrough Therapy status.
See More
Johnson & Johnson Reaches Deal to Purchase Atraverse Medical
Acquisition Announcement: Johnson & Johnson has entered into an agreement to acquire a company named Atraverse Medical.
Strategic Move: This acquisition is part of Johnson & Johnson's strategy to expand its portfolio in the medical sector.
Market Impact: The deal is expected to enhance Johnson & Johnson's capabilities and offerings in the healthcare market.
Future Prospects: The acquisition may lead to new innovations and improvements in medical technologies under Johnson & Johnson's umbrella.
See More
Johnson & Johnson Acquires Atraverse Medical to Enhance Cardiac Ablation Portfolio
- Acquisition Intent: Johnson & Johnson has announced its acquisition of Atraverse Medical to expand its cardiac ablation portfolio with the left-heart access system, with the deal expected to close in Q2 2026, further solidifying its market position in the cardiovascular sector.
- Technological Advantage: Atraverse's HOTWIRE Transseptal Access System, which has been FDA-cleared, has already been utilized in approximately 3,000 medical procedures, highlighting its critical role in atrial fibrillation ablation and enhancing J&J's technological competitiveness in this field.
- Market Performance: J&J's cardiovascular franchise achieved $8.9 billion in sales in 2025, reflecting a year-over-year growth of about 16%, and this acquisition is expected to further drive sales growth and increase market share.
- Financial Details Missing: While the financial terms of the deal were not disclosed, J&J's strategic acquisition underscores its ongoing investment and commitment to the cardiac health sector, aiming to meet the growing medical demand.
See More
J&J - JOHNSON & JOHNSON - TERMS OF ATRAVERSE DEAL REMAIN UNREVEALED
- J&J and its Deal: Johnson & Johnson is involved in a deal that has not disclosed its terms publicly.
- Focus on Transparency: The lack of disclosure raises questions about transparency in corporate agreements.
See More
Investors Should Focus on Undervalued Healthcare Stocks
- Market Opportunity Identification: CNBC's Jim Cramer urged investors to look at undervalued sectors, particularly healthcare stocks, which appear more attractive amidst the tech surge, providing diversification for portfolios.
- CVS Health's Market Advantage: Cramer highlighted CVS Health's benefits from a changing competitive landscape, as rivals like Rite Aid disappear and Walgreens scales back, allowing CVS to effectively increase market share through its insurance arm Aetna and numerous retail locations.
- Cardinal Health's Transformation: Cramer noted that Cardinal Health has been unfairly punished without clear reason, yet the company is transitioning from a traditional drug distributor to higher-growth services, particularly in supporting specialty medical practices, showcasing future growth potential.
- Johnson & Johnson's Strong Foundation: Cramer emphasized Johnson & Johnson's robust balance sheet and pipeline of potential blockbuster drugs, coupled with CEO Stephen Hemsley's return, which has bolstered market confidence in its ability to sustain growth.
See More
Investors Should Focus on Undervalued Healthcare Stocks
- Market Opportunity: Jim Cramer highlighted that despite the S&P 500 and Nasdaq hitting new highs, healthcare stocks are undervalued due to solid fundamentals, suggesting investors focus on these overlooked areas for portfolio diversification.
- CVS Health's Competitive Edge: Cramer emphasized that CVS Health is benefiting from a changing competitive landscape, as rivals like Rite Aid disappear and Walgreens scales back, positioning CVS to capture market share with its insurance arm Aetna and extensive retail locations.
- Cardinal Health's Transformation: Cramer noted that Cardinal Health has been unfairly punished without clear reasons, but the company is shifting from its traditional drug distribution role to higher-growth services, particularly in supporting specialty medical practices.
- Johnson & Johnson's Strong Outlook: Cramer pointed out Johnson & Johnson's robust balance sheet and potential blockbuster pipeline, while the return of CEO Stephen Hemsley has stabilized UnitedHealth Group and restored confidence in its growth trajectory.
See More
