Johnson & Johnson Sidesteps GLP-1 Drug Hype
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 53 minutes ago
0mins
Source: Fool
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high reliance on a single market that could pose financial risks in the future.
- Strategic Shift: Johnson & Johnson's CEO Joaquin Duato opts not to chase the GLP-1 hype, instead focusing on oncology, particularly in bone and lung cancer drugs, demonstrating a strong commitment to its core competencies.
- Diversification Advantage: As one of the largest pharmaceutical companies globally, J&J also holds a significant position in the medical device sector, offering products like surgical items and new joints, which enhances diversification for investors.
- Valuation Comparison: Eli Lilly's P/E ratio exceeds 40x, while J&J's stands at 29x; although J&J is not cheap, its 2.1% dividend yield is significantly more attractive than Eli Lilly's 0.6%, making it a more appealing long-term investment option.
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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: 253.980
Low
190.00
Averages
218.50
High
240.00
Current: 253.980
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.
Johnson & Johnson Sidesteps GLP-1 Drug Hype
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high reliance on a single market that could pose financial risks in the future.
- Strategic Shift: Johnson & Johnson's CEO Joaquin Duato opts not to chase the GLP-1 hype, instead focusing on oncology, particularly in bone and lung cancer drugs, demonstrating a strong commitment to its core competencies.
- Diversification Advantage: As one of the largest pharmaceutical companies globally, J&J also holds a significant position in the medical device sector, offering products like surgical items and new joints, which enhances diversification for investors.
- Valuation Comparison: Eli Lilly's P/E ratio exceeds 40x, while J&J's stands at 29x; although J&J is not cheap, its 2.1% dividend yield is significantly more attractive than Eli Lilly's 0.6%, making it a more appealing long-term investment option.
See More
Johnson & Johnson Avoids $100 Billion Weight Loss Market
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high dependency on a single market that could pose future financial risks.
- Strategic Shift: Johnson & Johnson opts not to chase the hot GLP-1 drugs, instead focusing on its core competencies in oncology, particularly in bone and lung cancer medications, showcasing its potential for diversified growth.
- Investment Attractiveness Comparison: Eli Lilly's P/E ratio exceeds 40x, while Johnson & Johnson's stands at 29x; although J&J is not cheap, its more attractive 2.1% dividend yield compared to Eli Lilly's 0.6% enhances its investment appeal.
- Long-Term Growth Potential: Johnson & Johnson's strong position in the medical device sector allows it to offer investors diversified options, mitigating the risks associated with a single drug market, which may lead to more stable returns in the long run.
See More
Congress Members' Stock Trades Draw Investor Attention
- Congressional Trading Trends: Despite Johnson & Johnson's stock rising about 23% this year, Congress members have sold more shares than they bought over the past six months, indicating a cautious stance, with three members investing between $15,000 and $30,000, reflecting differing views on the healthcare sector.
- Healthcare Stock Popularity: UnitedHealth Group's shares have surged over 29%, making it a favored choice among Congress members, with Republican Senator Markwayne Mullin purchasing between $50,001 and $100,000 on February 25, demonstrating strong confidence in the company.
- Investor Caution Advised: While copying congressional trades is a popular trend, the 45-day disclosure period means retail investors often act on stale data, potentially harming their returns as the market has already adjusted to the news by the time they learn of the trades.
- Research First: Investors should view congressional disclosures as a starting point for fundamental research rather than direct buy signals, as both Johnson & Johnson and UnitedHealth Group offer over 2% dividend yields, but investment decisions should be based on current valuations and personal risk tolerance rather than political disclosures.
See More
Congress Members Actively Buy Healthcare Stocks
- Congressional Trading Trends: Rep. Lisa McClain from Michigan and two other lawmakers increased their holdings in Johnson & Johnson in 2023, with McClain purchasing up to $30,000, indicating confidence in the company's future despite other members selling off shares in the past six months.
- Strong Performance of Healthcare Stocks: Johnson & Johnson and UnitedHealth Group have seen their stocks rise approximately 23% and 29% year-to-date, respectively, highlighting their appeal to investors, particularly among congressional members, due to stable earnings growth and high dividend yields.
- Investor Focus on Insider Trading: The stock trades of Congress members are closely monitored by investors because of their roles in shaping policies that affect the healthcare sector; however, explicit insider trading is illegal under the Stock Act, yet these trades can still influence market sentiment.
- Investment Decision Recommendations: While congressional trades may signal confidence, investors should conduct independent research based on current valuations and financial health of the companies rather than relying solely on political disclosures, to avoid potential losses from market volatility.
See More
Stocks Close Lower as AI Trade Volatility Increases
- Market Pullback: Stocks closed lower to end the holiday-shortened trading week, although the S&P 500 rebounded by about 1.5% after last week's decline, indicating short-term market volatility.
- Employment Data Impact: A soft June jobs report eased concerns about the Federal Reserve raising interest rates in the coming months, potentially providing some confidence to investors, yet the overall market remains affected by AI trade volatility.
- Portfolio Performance: This week, stocks in the portfolio such as Corning, Arm Holdings, and Intel faced pressure due to changing market sentiment, while software companies like Salesforce and Microsoft saw gains, both up nearly 5% for the week.
- Economic Data Preview: Next week will feature several important economic updates, including service sector activity reports and mortgage applications, which investors should monitor for their potential impact on the market.
See More
AbbVie, Coca-Cola, and J&J Report Strong Earnings
- AbbVie Earnings Highlight: AbbVie reported Q1 2026 revenue of $15 billion, a 12% year-over-year increase, with Skyrizi and Rinvoq contributing $4.48 billion and $2.12 billion in sales, respectively, effectively offsetting a 39% decline in Humira, while management raised full-year adjusted EPS guidance to $14.08 to $14.28, indicating strong growth potential post-Humira.
- Johnson & Johnson's Dividend King Status: Johnson & Johnson achieved Q1 2026 revenue of $24.06 billion, up 10% year-over-year, with adjusted EPS of $2.70 exceeding expectations, and the company raised its full-year revenue guidance to $100.3 billion to $101.3 billion, extending its 64-year dividend growth streak, solidifying its role as a quality anchor in investment portfolios.
- Coca-Cola's Steady Performance: Coca-Cola reported Q1 2026 revenue of $12.47 billion, a 12% increase year-over-year, with EPS of $0.86 beating estimates, and management raised 2026 comparable EPS growth guidance to 8% to 9%, reflecting strong demand and profitability in global markets.
- Market Outlook: With all three companies raising guidance in Q1, investors are keenly watching the upcoming earnings season, particularly the dividend payment dates for AbbVie and Coca-Cola on July 15 and July 1, respectively, as confidence in their sustained growth will be crucial.
See More
Johnson & Johnson Sidesteps GLP-1 Drug Hype
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high reliance on a single market that could pose financial risks in the future.
- Strategic Shift: Johnson & Johnson's CEO Joaquin Duato opts not to chase the GLP-1 hype, instead focusing on oncology, particularly in bone and lung cancer drugs, demonstrating a strong commitment to its core competencies.
- Diversification Advantage: As one of the largest pharmaceutical companies globally, J&J also holds a significant position in the medical device sector, offering products like surgical items and new joints, which enhances diversification for investors.
- Valuation Comparison: Eli Lilly's P/E ratio exceeds 40x, while J&J's stands at 29x; although J&J is not cheap, its 2.1% dividend yield is significantly more attractive than Eli Lilly's 0.6%, making it a more appealing long-term investment option.
See More
Johnson & Johnson Avoids $100 Billion Weight Loss Market
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high dependency on a single market that could pose future financial risks.
- Strategic Shift: Johnson & Johnson opts not to chase the hot GLP-1 drugs, instead focusing on its core competencies in oncology, particularly in bone and lung cancer medications, showcasing its potential for diversified growth.
- Investment Attractiveness Comparison: Eli Lilly's P/E ratio exceeds 40x, while Johnson & Johnson's stands at 29x; although J&J is not cheap, its more attractive 2.1% dividend yield compared to Eli Lilly's 0.6% enhances its investment appeal.
- Long-Term Growth Potential: Johnson & Johnson's strong position in the medical device sector allows it to offer investors diversified options, mitigating the risks associated with a single drug market, which may lead to more stable returns in the long run.
See More
Congress Members' Stock Trades Draw Investor Attention
- Congressional Trading Trends: Despite Johnson & Johnson's stock rising about 23% this year, Congress members have sold more shares than they bought over the past six months, indicating a cautious stance, with three members investing between $15,000 and $30,000, reflecting differing views on the healthcare sector.
- Healthcare Stock Popularity: UnitedHealth Group's shares have surged over 29%, making it a favored choice among Congress members, with Republican Senator Markwayne Mullin purchasing between $50,001 and $100,000 on February 25, demonstrating strong confidence in the company.
- Investor Caution Advised: While copying congressional trades is a popular trend, the 45-day disclosure period means retail investors often act on stale data, potentially harming their returns as the market has already adjusted to the news by the time they learn of the trades.
- Research First: Investors should view congressional disclosures as a starting point for fundamental research rather than direct buy signals, as both Johnson & Johnson and UnitedHealth Group offer over 2% dividend yields, but investment decisions should be based on current valuations and personal risk tolerance rather than political disclosures.
See More
Congress Members Actively Buy Healthcare Stocks
- Congressional Trading Trends: Rep. Lisa McClain from Michigan and two other lawmakers increased their holdings in Johnson & Johnson in 2023, with McClain purchasing up to $30,000, indicating confidence in the company's future despite other members selling off shares in the past six months.
- Strong Performance of Healthcare Stocks: Johnson & Johnson and UnitedHealth Group have seen their stocks rise approximately 23% and 29% year-to-date, respectively, highlighting their appeal to investors, particularly among congressional members, due to stable earnings growth and high dividend yields.
- Investor Focus on Insider Trading: The stock trades of Congress members are closely monitored by investors because of their roles in shaping policies that affect the healthcare sector; however, explicit insider trading is illegal under the Stock Act, yet these trades can still influence market sentiment.
- Investment Decision Recommendations: While congressional trades may signal confidence, investors should conduct independent research based on current valuations and financial health of the companies rather than relying solely on political disclosures, to avoid potential losses from market volatility.
See More
Stocks Close Lower as AI Trade Volatility Increases
- Market Pullback: Stocks closed lower to end the holiday-shortened trading week, although the S&P 500 rebounded by about 1.5% after last week's decline, indicating short-term market volatility.
- Employment Data Impact: A soft June jobs report eased concerns about the Federal Reserve raising interest rates in the coming months, potentially providing some confidence to investors, yet the overall market remains affected by AI trade volatility.
- Portfolio Performance: This week, stocks in the portfolio such as Corning, Arm Holdings, and Intel faced pressure due to changing market sentiment, while software companies like Salesforce and Microsoft saw gains, both up nearly 5% for the week.
- Economic Data Preview: Next week will feature several important economic updates, including service sector activity reports and mortgage applications, which investors should monitor for their potential impact on the market.
See More
AbbVie, Coca-Cola, and J&J Report Strong Earnings
- AbbVie Earnings Highlight: AbbVie reported Q1 2026 revenue of $15 billion, a 12% year-over-year increase, with Skyrizi and Rinvoq contributing $4.48 billion and $2.12 billion in sales, respectively, effectively offsetting a 39% decline in Humira, while management raised full-year adjusted EPS guidance to $14.08 to $14.28, indicating strong growth potential post-Humira.
- Johnson & Johnson's Dividend King Status: Johnson & Johnson achieved Q1 2026 revenue of $24.06 billion, up 10% year-over-year, with adjusted EPS of $2.70 exceeding expectations, and the company raised its full-year revenue guidance to $100.3 billion to $101.3 billion, extending its 64-year dividend growth streak, solidifying its role as a quality anchor in investment portfolios.
- Coca-Cola's Steady Performance: Coca-Cola reported Q1 2026 revenue of $12.47 billion, a 12% increase year-over-year, with EPS of $0.86 beating estimates, and management raised 2026 comparable EPS growth guidance to 8% to 9%, reflecting strong demand and profitability in global markets.
- Market Outlook: With all three companies raising guidance in Q1, investors are keenly watching the upcoming earnings season, particularly the dividend payment dates for AbbVie and Coca-Cola on July 15 and July 1, respectively, as confidence in their sustained growth will be crucial.
See More
