Jim Cramer Says He is “Particularly Fond” of Johnson & Johnson

Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer discussed, along with the need for diversification. Cramer highlighted that he is fond of the stock, as he said:

“You could own JNJ and Merck with their incredible franchises. You know what? I’m actually particularly fond of JNJ right now. They’re spinning off their commoditized artificial joint business.”

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. In addition, the company provides surgical systems, orthopaedic solutions, cardiovascular devices, and vision care products. Cramer noted that the company is getting out of “everything non-proprietary” during the November 11 episode, as he remarked:

“If you want to venture beyond what we call the CPG, consumer packaged goods, world, I think you’d do very well with owning J&J or Amgen… J&J’s getting out of everything non-proprietary, artificial joints for example, and really bearing down on high-growth pharma with cancer being a specialty… They both have yields, more than 2.7%. How strongly do I feel about these former safety stocks? We have a monthly investment club meeting on Thursday, and I’ve told Jeff Marks, my co-portfolio manager, that we at least have to put one of these names in the bullpen. I don’t want to wait to look back and say, how did we miss that bottom?”

While we acknowledge the risk and potential of JNJ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JNJ and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.