Why Johnson & Johnson (JNJ) Still Fits a Defensive Growth Case

Johnson & Johnson (NYSE:JNJ) is one of the best stocks to buy according to Goldman Sachs’ Conviction List. Goldman added Johnson & Johnson to its U.S. May Directors’ Cut Conviction List on May 1, 2025, alongside Houlihan Lokey, while removing Meritage Homes. The update described the list as a curated selection of stocks Goldman believes hold strong investment potential, though inclusion is separate from a formal rating change.

The company’s latest results support the defensive-growth case without needing any heroic spreadsheet acrobatics. On April 14, Johnson & Johnson reported Q1 2026 sales of $24.1 billion, up 9.9% year-over-year, with operational sales growth of 6.4%. Adjusted EPS came in at $2.70, and the company raised its 2026 outlook to estimated reported sales of $100.8 billion and adjusted EPS of $11.55 at the midpoint. Innovative Medicine sales rose 11.2% to $15.43 billion, while MedTech sales increased 7.7% to $8.64 billion.

Jim Cramer Shares Key Trend For Johnson & Johnson (JNJ) Shares

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The pipeline also remains active. Johnson & Johnson highlighted recent approvals for ICOTYDE in plaque psoriasis, TECVAYLI plus DARZALEX FASPRO in multiple myeloma, VARIPULSE Pro in Europe, and TECNIS PureSee for U.S. cataract patients. On May 5, it also reported Phase 2b DUET data for JNJ-4804 in inflammatory bowel disease and pivotal study results for its investigational OTTAVA soft-tissue surgical robotic system.

Johnson & Johnson (NYSE:JNJ) is a healthcare company focused on Innovative Medicine and medical technology, with products and therapies across oncology, immunology, neuroscience, cardiopulmonary, cardiovascular, orthopedics, surgery, and vision.

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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