Top 5 Healthcare Stocks to Buy

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. It is one of the premier healthcare stocks to invest in. On October 10, The Janssen, a pharmaceutical company which is a subsidiary of Johnson & Johnson, revealed that more than half of patients who responded to their Sterala ulcerative colitis therapy in a phase 3 trial remained in clinical remission through four years of treatment. 

On July 21, UBS analyst Kevin Caliendo maintained a Neutral rating on Johnson & Johnson (NYSE:JNJ) stock and lowered the price target to $180 from $185, noting that the macro economic slowdown had led to decreasing forward estimates for the firm. 

Among the hedge funds being tracked by Insider Monkey, Florida-based firm GQG Partners is a leading shareholder in Johnson & Johnson (NYSE:JNJ), with 6.6 million shares worth more than $1.2 billion. 

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:

“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)