Jim Cramer on Johnson & Johnson: “It Should Have Gone Higher, But It Just Shows You How Hard It Is to Buck Stagflation Theories”

Johnson & Johnson (NYSE:JNJ) is one of Jim Cramer’s latest stock calls as he shared how to navigate Wednesday’s tough tape. Cramer believes that the stock should have gone higher, as he stated:

What can you do on days like today? Well, the investing club… We like to buy, not big, but we’re not sellers. Why? Couple of reasons. We now think that Iran’s response could be more anemic than its previous barrage of pain. We’re going to find out soon enough though. We also like the stock market… when it’s oversold, -7 on the S&P Oscillator, that’s a key gauge that measures buying and selling pressure, and boy, that shows that there’s been way too much selling pressure.

Now, I know this implies short-termism, and we’re long-game players at the Trust, but it never pays to have a soured basis. And it’s easier to get a good basis when you have an indicator that can predict when the market’s likely to bounce. We have that right now. Of course, it’s harder to find good stocks that are worth buying when the crowd’s thinking stagflation. For instance, take the drug stocks. You know, you’re not supposed to like the drug stocks in stagflation, but I got my eye on Johnson & Johnson. It just received a green light on a really important drug for plaque psoriasis. It’s a pill, not an injection. It’s huge. But the stock was down nearly a dollar today. It should have gone higher, but it just shows you how hard it is to buck stagflation theories.

Photo by Artem Podrez on Pexels

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. We recently talked about the stock while discussing Goldman Sachs top healthcare stocks, which you can read about here.

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