ChatGPT Stock Advice: Top 12 Stock Recommendations

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7. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 98

Johnson & Johnson (NYSE:JNJ) is a multinational corporation engaged in researching, developing, manufacturing, and selling various products. Over the last few years, the company has been shifting its focus from consumer health products toward the pharmaceuticals and medtech sectors, which offer significant opportunities for growth.

In March, the company announced investments of $55 billion in the US over the next four years, representing a 25% increase in investment from the prior four years and building on Johnson & Johnson (NYSE:JNJ)’s 140-year legacy of improving lives and supporting jobs in America. The plan includes four new manufacturing facilities, along with significant investments in R&D infrastructure.

Johnson & Johnson (NYSE:JNJ) recently reported sales of $21.9 billion for Q1 2025, with an operational sales growth of 4.2%. Adjusted earnings per share were posted a $2.77, up by 2.2% and beating estimates by 19 cents. The strong results were driven by robust cancer drug sales. The company also raised its 2025 sales forecast by $700 million to reflect the inclusion of schizophrenia drug Caplyta to its portfolio.

On April 9, Goldman Sachs upgraded Johnson & Johnson (NYSE:JNJ)’s rating from Neutral to Buy and also raised the stock’s price target from $157 per share to $172. The encouraging outlook was based on the analyst’s belief that market concerns regarding the loss of exclusivity for Stelara are overstated. Wall Street analysts have a consensus Buy rating for JNJ, with an average share price upside potential of 9.15%.

Investors are also bullish on the company. According to Insider Monkey’s database for Q4 2024, 98 hedge funds held a stake in Johnson & Johnson (NYSE:JNJ), up from 81 at the end of the third quarter. Mar Vista U.S. Quality Select Strategy stated the following regarding JNJ in its Q1 2025 investor letter:

“Johnson & Johnson (NYSE:JNJ) appreciated 16% as the market favored businesses with more defensive characteristics. JNJ also posted strong fundamental results in pharmaceutical (+7% revenue growth) ahead of Stelera biogeneric approvals in January 2025. We expect JNJ to grow revenues 5-7% through 2030 with faster EPS growth driven by new innovative immunology, oncology, and neurology drugs. JNJ’s MedTech franchise should outpace the growth of the rest of the industry on the strength of new products in electrophysiology, orthopedics, and robotics.”

JNJ is among the best companies to invest in according to ChatGPT’s stock advice.

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