Jim Cramer Analyzed 5 Stocks While the Market Was Oversold

4. Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson (NYSE:JNJ) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the oversold market. Cramer was quite bullish on the company’s stock, as he stated:

Yesterday, we got some terrific news from Johnson & Johnson, but because the tape was so ugly, the stock did nothing. Actually finished the session down 0.35%. Oh, it was a brutal session… Sometimes, a terrible, horrible, no good, very bad day for the averages creates buying opportunities for you, and I think we’re getting one right now in Johnson & Johnson. Why? Because yesterday morning, we learned that they got FDA approval for ICOTYDE. Now, that is their oral treatment for moderate to severe plaque psoriasis…

Right now, AbbVie and Johnson & Johnson both have injectable drugs in the same category, but nobody wants to use a needle if they can use a pill instead. AbbVie’s plaque psoriasis drug, Skyrizi, did over $17.5 billion in sales this year. Now, J&J has a pill version that I think could conceivably eat that drug alive. We’re talking about an enormous total addressable market year, and yet the stock actually went lower in response. That’s silly… We’ve been trying to own this one. I think that right now it’s just trying to catch its breath, but it is such a winner… I’ve been pushing JNJ hard since last September… Management thinks the new drug can ultimately do $5 billion in peak sales. I think that’s a very low-ball number. Some of Wall Street is even more bullish…

Here’s the bottom line: The market-wide sell-off yesterday masked some very good news for JNJ with their novel plaque psoriasis pill gaining FDA approval. I think you’re getting a great buying opportunity here because this was a genuine positive development that absolutely, it did nothing for the share price because of what’s happening in Iran. Long story short, JNJ’s story keeps getting better and better and better, and it is still not too late to buy the stock. Plus, this company’s more or less immune to the price of oil. It’s a textbook slowdown stock.

Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases.