5 Best Bear Market Stocks To Invest In

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) is a Dividend Aristocrat stock, making it one of the best names to own during a market downturn. It has increased its dividend yield for 59 years in a row, and offers a 2.56% yield as of June 7. The company deals in the manufacture and sale of consumer products, medical devices and biopharmaceutical products.

For the first quarter, Johnson & Johnson (NYSE:JNJ) reported EPS of $2.67, outperforming estimates by $0.10. However, quarterly revenue of $23.4 billion was recorded below Street estimates by $192 million.

On May 23, SVB Leerink analyst David Risinger assumed coverage of Johnson & Johnson (NYSE:JNJ) with an ‘Outperform’ rating and a $200 price target. Risinger holds that the company should outperform owing to its ability to post consistent earnings growth and execute value-adding mergers and acquisitions.

A detailed study of the 900+ hedge funds in the database of Insider Monkey showed that 83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) shares at the close of the first quarter, with aggregate stakes worth $7.4 billion. Its most prominent shareholder in the first quarter was Arrowstreet Capital, which increased its stake in the company by 38% to stand at 6.65 million shares priced at $1.17 billion.

Distillate Capital, an investment firm, discussed Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the fund said:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”