Goldman Sachs Healthcare Stocks: Top 10 Stock Picks

4. Johnson & Johnson (NYSE:JNJ)

Goldman Sachs Equity Stake: $1.93 Billion

Number of Hedge Fund Holders: 91

Johnson & Johnson (NYSE:JNJ) is one of Goldman Sachs’ top healthcare stock picks. On July 10, analysts at Wolfe Research reiterated an ‘Outperform’ rating on the stock and a $175 price target. The bullish stance underscores the company’s strong performance year to date amid soaring regulatory concerns.

The stock is up by more than 8% year-to-date, outperforming the S&P 500, which is up by approximately 6%. The research firm expects the stock to continue its impressive run, especially with the settling of the talc litigation in the third quarter. An update on the litigation should alleviate concerns and mitigate the long-term impact on the stock.

In addition, Wolfe Research is bullish on Johnson & Johnson, as the estimated $400 million tariff impact is poised to be reduced by half. The company is on course to deliver $22.8 billion in revenues in the second quarter, in line with consensus estimates. Full-year revenues are expected at $91.9 billion, slightly above consensus estimates of $91.4 billion. Strong performance in Tremfya and Darzalex is expected to continue offsetting the slowdown in Stelara’s sales growth.

Johnson & Johnson (NYSE:JNJ) is a healthcare company focused on developing and producing pharmaceutical products and medical devices. It develops and delivers innovative medicines to treat a range of diseases, including oncology, immunology, neuroscience, and cardiopulmonary conditions.