10 Most Profitable Healthcare Stocks to Buy

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1. Johnson & Johnson (NYSE:JNJ)

Net Income (TTM): $26.8 billion

Operating Margin (TTM): 22.99%

Number of Hedge Fund holdings: 103

On January 22, TD Cowen lifted the price target on Johnson & Johnson (NYSE:JNJ) to $250, up from $222, and maintained a Buy rating, citing the company’s fourth quarter results. The revised price target reflects an upside potential of approximately 14%.

According to the firm, the initial projection of Johnson & Johnson (NYSE:JNJ) should uplift the consensus revenue and EPS forecasts for the healthcare powerhouse. From this year and beyond, the company’s Pharmaceutical and Medical Devices franchises are expected to continue their growth trajectory, TD Cowen noted.

On the same day, several other analysts updated their outlooks to better reflect the company’s Q4 performance, which exceeded market estimates with $24.6 billion in revenue. BofA Securities also slightly raised its price target on Johnson & Johnson (NYSE:JNJ) from $220 to $221 and reiterated a Neutral rating on the stock. The company’s financial results were described as “solid” by the firm, which attributes it to the growth drivers, particularly currency movements.

​Johnson & Johnson (NYSE:JNJ), headquartered in New Jersey, offers healthcare products worldwide. Founded in 1886, the company operates in two main segments: Innovative Medicine and MedTech.

While we acknowledge the potential of JNJ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JNJ and that has 100x upside potential, check out our report about this cheapest AI stock.

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