Is Johnson & Johnson a Buy?
Johnson & Johnson (NYSE: JNJ) is one of the biggest names in healthcare. It's known for brands such as Tylenol, Benylin, and Aveeno. It has made a wide range of drugs in multiple therapeutic areas, including oncology, immunology, infectious diseases, neuroscience, and others. It also makes medical devices, including orthopedics.
This diversification has given the business some resiliency to the market's recent turmoil. J&J's shares have fallen a modest 3% year to date, outperforming the S&P 500, which is down by 23%. It's been a safe stock to own over the years, but does the healthcare company offer enough value to make for a good investment today?
A big reason why Johnson & Johnson has been a solid buy is because of its strong financials. In the trailing 12 months, the company netted a profit of $18.4 billion on revenue of $95.6 billion, for a profit margin of 19%. During that time frame, it also generated free cash flow of just under $20 billion.
Source Fool.com
