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Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for any changes.
Latest Valuentum Commentary

Dec 27, 2019
Johnson & Johnson Rebounds
Image Shown: Shares of Johnson & Johnson are on the rebound as various analysts are coming around to the name. We continue to like Johnson & Johnson in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios and view recent technical strength in shares of JNJ as a sign that the market is finally taking into consideration the company’s numerous guidance boosts and more importantly, the strength of its expected future free cash flows. Going forward, powerful tailwinds supporting rising healthcare expenditures in the US and abroad will continue to support Johnson & Johnson. To read more about those favorable tailwinds, check out this article here.
Dec 9, 2019
Health Care Sector Remains Hot
Image Shown: The Health Care Select Sector SPDR ETF, a holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, has been on an upward tear over the past several years. Strong macro tailwinds combined with the ability for industries within the health care sector to generate meaningful shareholder value have been key to supporting strong capital appreciation of equities operating in the area of late. The Health Care Select Sector SPDR ETF is a top holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. We like the exposure and diversification to health care equities that XLV provides. XLV yields ~1.5% as of this writing. State Street Corp acts as advisor to the fund through State Street Global Advisors, and annual fund operating expenses come out to just 13 basis points (we like the XLV ETF’s low gross expense ratio).
Nov 6, 2019
Procter & Gamble Appears Overvalued
Image Shown: Shares of Procter & Gamble have been on an epic run since mid-2018, and we think shares have gotten ahead of themselves here.Consumer staples giant Procter & Gamble is a solid company that generates sizable and consistent free cash flows. However, in our view, shares of PG have gotten way ahead of themselves due to a “flight to quality” that has seen the market bid up P&G’s share price from the low $70s in April 2018 to almost $120 as of this writing. Shares of PG now yield 2.5% as of this writing and trade well above the top end of our fair value estimate range of $101 per share. Please note P&G has paid out a dividend for 129 consecutive years and the company has increased its payout over the past 63 consecutive years, earning it the coveted status of ‘Dividend Aristocrat’.
Oct 30, 2019
Johnson & Johnson Announces New Test Results That Reveal No Traces of Asbestos in Johnson Baby Powder Products
Image Source: Johnson & Johnson – February 2019 CAGNY IR Presentation. Major retailers including Walmart, Rite Aid Corp, and CVS Health pulled Johnson Baby Powder products from their shelves after the announcement by the FDA. Johnson & Johnson is hoping that by fighting back it can preserve its brand power, revenues, and position on retailer’s shelves once it’s all said and done. We will continue to monitor this situation going forward and would like to note that Johnson & Johnson, potential legal liabilities aside, raised its full-year guidance for 2019 multiple times this year highlighting the underlying demand for its vast array of healthcare-related offerings. That supports a nice free cash flow growth trajectory.
Oct 23, 2019
Biotech and Pharma Roundup
Image Source: e-Magine Art. Some big news in the world of biotech and pharmaceuticals has come out this week, starting Monday October 21, that we want to get out in front of our members. In alphabetical order by ticker symbol: BIIB, BMY, MRK, NVS.
Oct 20, 2019
Johnson & Johnson’s Talc Problems Hit Another Bump
Image Shown: Johnson & Johnson’s embattled ‘Baby Care’ segment performed poorly during the third quarter of 2019. Image Source: Johnson & Johnson – IR Presentation. Johnson & Johnson was back in the news Friday October 18 when the company announced it was voluntarily recalling “a single lot” of its embattled Johnson’s Baby Powder product in the US due to alleged asbestos contamination risks. The US Food and Drug Administration tested a single bottle from this lot, according to Johnson & Johnson, with the federal regulator noting that sub-trace levels (no greater than 0.00002%) of chrysotile asbestos had been detected in the bottle. Johnson & Johnson plans to vigorously contest these allegations and maintains that its talc products don’t contain asbestos.
Oct 15, 2019
Johnson & Johnson Raises Full-Year Guidance Yet Again
Mounting legal liabilities have been weighing negatively against Johnson & Johnson and its stock price over the past year as investors fret about the size of these potential settlements/judgements. We see the firm’s latest quarterly performance and guidance increase for 2019 as validation of the strength of Johnson & Johnson’s broad-based healthcare business model. Once the market gets a better idea of Johnson & Johnson’s total potential legal liabilities, shares could begin to converge towards their intrinsic value given the underlying strength in the firm’s businesses. Our fair value estimate for shares of JNJ stands at ~$150 per share.
Sep 3, 2019
Triple-A Rated J&J’s Opioid Liabilities Likely More Than Priced In
Image Source: J&J. Shares of J&J have settled into the high-$120s at the time of this writing, well below our ~$150 fair value estimate. We’re going to stick with J&J in both the Dividend Growth Newsletter portfolio and Best Ideas Newsletter portfolio at this time.
Aug 27, 2019
Elanco Buys Bayer’s Animal Health Unit, Gaining Scale and Greater Exposure to the “Humanization of Pets” Trend
On August 20, Elanco Animal Health Inc agreed to acquire Bayer AG’s animal health unit for $7.6 billion (at the time the deal was announced) through a cash and stock deal. This is a transformative deal for Elanco and one that will create a real competitor to Zoetis' and Merck’s animal health units. For Bayer, the company can now pivot to segments where it has stronger competitive advantages while also raising cash to cover potential Roundup-related legal liabilities (which could be enormous). We will be monitoring the space going forward but are staying firmly on the sidelines for now.
Jul 30, 2019
Mylan Surges, Why Fair Value Estimates Matter
Image Source: Valuentum's 16-page Report of Mylan. Mylan NV agreed to merge with Pfizer Inc’s Upjohn unit to form a much larger and more diversified entity in the pharmaceutical industry. Shares of Mylan shot up to just under the low end of our fair value estimate range as of this writing.


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The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports, articles and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. The sources of the data used on this website are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor and does not offer brokerage or investment banking services. Valuentum, its employees, and affiliates may have long, short or derivative positions in the stock or stocks mentioned on this site.