Buy Johnson & Johnson Stock For the Yield, Not Growth

Healthcare and consumer goods giant Johnson & Johnson (JNJ) is dominating headlines today after it announced plans to sell its diagnostics unit to Carlyle Group (CG) for over $4 billion. Now that Johnson & Johnson is shedding its slow-growing business to focus on more profitable lines, is this a buying opportunity? Find out now.

On the fundamentals side, Johnson & Johnson gets a solid B-level rating from me. Johnson & Johnson’s strong suits are its operating margin growth (B), earnings growth (B) and return on equity (A) , while its sales growth, earnings momentum and analyst earnings revisions need some work (all Cs). As of this posting, March 31, I consider Johnson & Johnson stock a C-rated Hold. With its solid dividend yield this is a good hold if you already own shares but I wouldn’t recommend it for new money at this time.

Source: InvestorPlace

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