15 Fresh Stocks Jim Cramer Discussed

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holdings: 103

Jim Cramer has turned quite optimistic on pharmaceutical firm Johnson & Johnson (NYSE:JNJ) lately. Most of the CNBC TV host’s optimism stems from the firm’s cancer drug portfolio and its decision to spin off its orthopaedic business. The shares have gained 47.8% over the past year and by 5.5% year-to-date. Early in January, Bernstein raised Johnson & Johnson (NYSE:JNJ)’s share price target to $208 from $193 and kept a Market Perform rating on the shares, The Fly reported. The financial firm pointed towards clearer visibility into macroeconomic uncertainties as one factor behind the optimism. Cramer continued to praise Johnson & Johnson (NYSE:JNJ)’s business spinoff strategies and the cancer portfolio:

“I hope that the people at JPMorgan for their 44th Healthcare Conference don’t take this personally. This company did not present and I am now willing to say that after Eli Lilly it was the best. This has been a remarkable move, this is JNJ. Now it had been kept down, the talc lawsuits, they decided to stop that. . .

“Right now they got rid of Kenvue. Now we know that was timely. They are getting rid of orthopaedics, that is a market that does not have any price to earnings multiple to speak of, because it is a commodity. But they have the fastest growing oncological portfolio, they have so many great things in terms of like machines and what they are doing. And I’ve got tell you David I think this thing can go much higher, why, becuase it’s only selling at 19 times earnings, I shouldn’t say this, Novartis has a great portfolio too. . .but I just like this and what really was really troubling, the talc lawsuits. They’re fighting them one by one. No more of this thing where they’re doing a class action, it wouldn’t have mattered, they would have been able to amortize it. But forget that, don’t worry about that, because they’re not losing the ovarian cancer cases. This one is pureplay pharma and and it’s growing really fast.”

Mar Vista U.S. Quality Strategy also discussed Johnson & Johnson (NYSE:JNJ) in its fourth quarter 2025 investor letter:

“Johnson & Johnson (NYSE:JNJ) stock demonstrated strong performance in Q4, driven by robust financial results, upward guidance revisions, and accelerating growth for the pharmaceutical and medical technology segments. The company’s consistent execution across key business segments and positive market sentiment, despite a significant headwind from Stelera generics, contributed to its outperformance relative to broader market indices. Management continues to expect 5-7% revenue growth through 2030 which exceeds consensus estimates.”