Johnson and Johnson is the number one diversified medical company today. With the launching of a vaccine that was different from all others, plus a variety of products that have been in the market for years, the brand has a wide recognition around the world and their stock has been going up for a while now, though not without fluctuations.
This medical company concentrates on immunology, oncology, and neuroscience drugs, as well as other pharmaceutical products and medical devices. Sales in all the three areas mentioned have shown signs of going up, showing how Johnson and Johnson has positioned itself as a leader in the industry.
The only area in which the company has reported losses is the direct consumer health sales, which can be explained due to the effects of the Covid pandemic on the financial situation of normal families.
Yes, Johnson and Johnson is growing at the start of 2021, and it is believed the trend will continue. But does this company align with your principles and beliefs? How does investing in J&J fit your portfolio?
These are some questions traders have to ask themselves if interested in investing in J&J, or any other company, for that matter. Experts recommend not using more than 10% of your total investing capital in one single company. Having a diversified portfolio is an effective way of keeping risk under control.
If you have decided Johnson and Johnson is the right stock for you to invest in, then we have designed a guide to help you buy J&J shares, as well as a company overview, since it’s important as an investor, to be familiar with the company’s business model, future projects, and also with their income, debt, and competition.
Let’s start from the beginning.
Is this a good time to buy Johnson and Johnson stock?
At the moment, Johnson and Johnson may not be an attractive investment for traders, however tempting it may be given the fact that their vaccine has created a quite positive perception in the market. Very recently, the ban on J&J vaccines was lifted after an unexpected setback, and it still expected that the price per share will grow in the second half of 2021, but the company’s fundamental analysis shows that Johnson and Johnson is not at a strong point, and litigations in the future may complicate their situation.
Investors are encouraged to buy stock of companies that show consistent growth in their quarterly sales and income.
In the case of J&J, traders should stay updated on the news and see how the vaccine is working in order to make a more informed decision if considering buying Johnson and Johnson shares.
Reasons to put off buying Johnson and Johnson shares
It is clear that Johnson and Johnson won’t be experiencing any financial boost in the near future. While millions of vaccines were distributed in the US, the company is still fighting a bad reputation due to patients experiencing strange clogs, with a temporary ban on administering these vaccines, as well as manufacturing problems. If the situation settles, we may start seeing the company grow by late 2021.
Competition should not be overlooked when talking about Johnson and Johnson and their vaccine. At the moment, the J&J vaccine has undeniable advantages. The company is selling them cheap but they are not making a profit, and the fact that vaccines are administered in one dose makes it a good option for many people. However, the efficacy of the vaccine is less than other competitors, like Pfizer or Moderna. And if these companies go for a single dose vaccine too, Johnson and Johnson will fall behind.
Current events may not be the only thing to keep in mind, since in fact there may be better reasons to actually buy Johnson and Johnson stock.
We can think about dividends. Johnson and Johnson is well-known for offering good percentages and keeping them growing for 59 years. This alone is an interesting reason to go for J&J shares.
But Johnson and Johnson is also a safe investment when considering the growth of the healthcare industry. And here is where J&J shines, being the largest healthcare company in the whole world. What is more, the company reinvests a lot of its income on innovation, research, and development, which shows they may have a great future ahead.
Investors may consider this enough to choose to buy Johnson and Johnson stock. After all, these are quite good reasons, especially for long-term investors and those looking to put money in the growth of the healthcare industry, in exchange for higher returns in the future.
How to buy Johnson and Johnson stock?
Buying J&J stock is straightforward using a broker. If you already have a broker, you just need to make sure they offer access to the New York Stock Market (NYSE), since here it’s where you are going to find the JNJ stock to be bought and sold.
If you don’t have a broker yet, apart from making sure they offer you the necessary access to the market, there are other considerations to keep in mind when choosing one. So, how do you make sure you are choosing the right broker for you?
First, traders want their brokers to be registered with the appropriate regulatory bodies in order to make sure their information and money are safe.
Then there are a myriad of aspects to keep in mind, and their importance will depend on what is the investors’ trading style and level of expertise. Are you mostly interested in low fees and commissions? Is it important for you to have reliable customer service? Are you looking for educational tools or maybe advanced research graphs and charts? Or maybe, are you interested in social trading?n
Traders should answer all these questions before committing to a broker. Choosing the right broker that matches your style and offers you the tools to achieve the success you’re hoping for, is the most important decision any trader has to make.
Once you have your broker and have opened an account and deposit money, then it’s time to decide how many Johnson and Johnson shares you want to buy. This will depend on how this investment fits your portfolio and the money you have available to invest.
Traders can buy shares at the current market price making an order that can be executed immediately. Alternatively, traders can opt for a limit order that allows them to choose a price at which they want to buy the shares. When the price of the stock falls or rises to that determined price, then the order is executed.
Company overview
Johnson and Johnson is the largest healthcare company in the world. It does research and development in the medical industry, as well as manufacturing and selling a wide range of pharmaceutical drugs, medical devices, and consumer goods. Their baby care products are famous all around the world, as well as their skin products and oral care line.
This American company is traded on the NYSE under the ticker JNJ.
The company was created in 1886 and has its headquarters in New Brunswick, NJ, United States.
Final thoughts on buying Johnson and Johnson stock
While right now buying Johnson and Johnson stock may not be a good idea, there is no doubt that there is potential to grow in the future. This makes JNJ stock a good idea for investors willing to face the risk that comes from investing in a company like this.
Johnson and Johnson is without a doubt a large company dedicated to the development and research in order to innovate in the healthcare and medical industry. This makes them a safe investment and helps to make predictions of continuous growth. However, litigation and unknown circumstances that may come from the future perception of the Johnson and Johnson vaccine may change in the future.
Investing in Johnson and Johnson stock today comes with a bit of additional risk, so traders interested in their shares should keep it in mind.
