5 Safe Stocks To Buy According To Hedge Funds

04. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders as of Q2, 2022: 83

Johnson & Johnson (NYSE:JNJ) specializes in medical devices, pharmaceuticals, consumer products, and other packaged goods. Unlike the S&P 500, which has fallen 20.6% year to date, Johnson & Johnson (NYSE:JNJ) shares are actually up 1.37% as of October 28. Despite macro pressures such as a strong U.S. dollar which makes Johnson & Johnson (NYSE:JNJ) international earnings less in dollar terms, the company reported strong third-quarter results with 8.2% organic sales growth. In terms of its EPS, Johnson & Johnson (NYSE:JNJ) had a relatively strong Q3 given adjusted EPS of $2.55 versus the consensus of $2.48. Sales for the period were $23.8 billion versus the consensus of $23.34 billion.

On October 19, Bernstein analyst Lee Hambright lowered his price target on Johnson & Johnson (NYSE:JNJ) to $190 from $194 and kept a Market Perform rating on the shares. Johnson & Johnson (NYSE:JNJ) is a dividend king, given it has increased its dividend for 60 consecutive years.

As of the close of Q2 2022, 83 hedge funds tracked by Insider Monkey owned stakes in Johnson & Johnson (NYSE:JNJ), with a total value of over $6.7 billion. In the previous quarter, 83 hedge funds owned stakes in the pharmaceutical company as well, worth over $7.4 billion.

Distillate Capital Partners LLC mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here is what the firm has to say:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”