UBS Backs Johnson & Johnson as a Defensive Play in Uncertain Times

Johnson & Johnson (NYSE:JNJ) is one of the best stocks for a retirement stock portfolio.

On June 12, UBS global equity strategist Andrew Garthwaite’s team pointed to Johnson & Johnson as one of the top cyclical picks, excluding financials, whose performance tends to move with the broader economy.

UBS Backs Johnson & Johnson as a Defensive Play in Uncertain Times

A smiling baby with an array of baby care products in the foreground.

The stock has gained over 9% in 2025 and currently offers a dividend yield of around 3.4%. Most analysts rate it as a hold, though LSEG data suggests there’s still over 9% potential upside from current levels.

Last month, Goldman Sachs raised its price target on Johnson & Johnson (NYSE:JNJ) from $172 to $176 and added the stock to its conviction list. The firm made the following statement in its May report:

“JNJ is a stable, defensive grower with the industry’s strongest balance sheet allowing for continued high [return on invested capital] investments in the Innovative Medicines segment to augment revenue growth.”

The firm highlighted that JNJ “has a strong pipeline,” with “meaningful revenue opportunities” in treatments for conditions such as multiple myeloma, lung cancer, and other serious illnesses.

While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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