5 Most Profitable New Stocks Today

3. Kenvue Inc (NYSE:KVUE)

Net Income (TTM): $1.57B

Kenvue Inc (NYSE:KVUE) spun off from Johnson & Johnson last year and started publicly trading in May. The stock jumped in December after a judge ruled in the company’s favor in a class action lawsuit alleging prenatal exposure to Tylenol may contribute to autism or attention-deficit hyperactivity disorder.

As of the end of the third quarter of 2023, 84 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Kenvue Inc (NYSE:KVUE).

Mayar Capital made the following comment about Kenvue Inc. (NYSE:KVUE) in its third 2023 investor letter:

“We also initiated a new investment in the shares of Kenvue Inc. (NYSE:KVUE). In August, Johnson & Johnson completed the split-off from Kenvue in which J&J shareholders could tender their shares in exchange for Kenvue shares at a 7% discount. Kenvue is formerly the J&J Consumer Health business. The transaction makes sense – the Consumer division was always small for J&J and this separation gives investors two distinct options, one pure-play FMCG company, and one pure-play healthcare company. We like Kenvue’s strong brand portfolio across its OTC medication business as well as its beauty and other healthcare brands (such as Listerine and Johnson’s), and the company has some very strong positions in its niches. While this isn’t a fast-grower, the manufacturing scale, IP and distribution network of this business provide a deep enough moat to give reasonable assurances about the company’s quality. And the current valuation looks attractive.”