The Best and Worst Dow Stocks for the Next 12 Months

25. Johnson & Johnson (NYSE:JNJ)

Upside Potential: 9.2%

Market Cap: $374 billion

Number of Hedge Fund Holders: 98

Johnson & Johnson (NYSE:JNJ) is a healthcare company that develops therapeutics, medical devices, and consumer health products. The company is known for its innovation capabilities and thus focuses on high-growth, scientific research-driven healthcare segments.

Johnson & Johnson (NYSE:JNJ) recently announced that it will spend around $55 billion in the US over the next four years. The pharmaceutical industry is broadly insulated from tariffs so far, but things might change in the coming months. Despite potential tariffs, the company maintained its FY 2025 EPS guidance and modestly increased its revenue guidance, as announced with its Q1 2025 results on April 15.

An analyst from Raymond James noted that Q1 results were strong, with better performance in the pharmaceutical segment, which has driven upward revisions in revenue and EPS estimates. Despite the impact of the loss of exclusivity (LoE) from Stelera, the company should still witness healthier, low single-digit growth. The analyst also believes the new guidance is conservative and achievable, but potential tariffs remain a risk for the pharmaceutical business. He increased the share price target to $164 from $162, keeping his Outperform rating intact.