Johnson & Johnson (JNJ) Upgraded to Buy as Growth and Margins Impress Analysts

Johnson & Johnson (NYSE:JNJ) ranks among the stocks to benefit from an onshoring boom. On July 23, Erste Group raised the stock rating of Johnson & Johnson from Hold to Buy. The firm attributed the upgrade decision in large part to Johnson & Johnson’s superior operating margin and return on equity when compared to competitors.

Johnson & Johnson (JNJ) Upgraded to Buy as Growth and Margins Impress Analysts

Pixabay/Public Domain

Johnson & Johnson has increased its sales and earnings growth estimate, according to Erste Group, with earnings per share predicted to rise by about 9% in 2025 compared to the previous year.

Based on its price-to-earnings ratio, Erste Group believes that Johnson & Johnson’s stock is attractively valued. The firm also anticipates that Johnson & Johnson’s improved growth prospects will fuel further medium-term price increases for the company’s stock.

Johnson & Johnson is a notable name in the healthcare industry, which includes sub-sectors like pharmaceuticals, medical equipment, and consumer health products. The company is known for creating medications to treat a variety of conditions and diseases, including cancer, diabetes, and HIV/AIDS.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds