J&J Boasts Below-Market Earnings Multiple; Deal with Actelion Not Concerning
Image Shown: J&J’s robust pharma pipeline; source: J&J There’s a lot to like about J&J’s investment opportunity, not the least of which is its strong pharmaceutical pipeline. Deal-making could challenge its pristine balance sheet, but we don’t expect much to derail our thesis. By Brian Nelson, CFA J&J (JNJ) reported solid fourth-quarter 2016 results Tuesday, January 24. Uncertainty regarding the healthcare landscape in the midst of a Trump Presidency is the main dynamic weighing on shares, but operational sales growth of 2.3% and adjusted fourth-quarter earnings per share expansion of 9.7% weren’t bad by any stretch. They were actually quite good. We wonder if many portfolio managers are rotating out of some of the strong healthcare entities on the basis … Read more