I’m Putting My Cash Stockpile to Work on These 3 Stocks

In conclusion, I am confident that Johnson & Johnson remains a classic SWAN stock – although I must admit that I am not a fan of this classification because it can convey a false sense of security. As an investor in individual stocks, I simply feel obliged to revisit my holdings from time to time and check whether my investment thesis is still valid and the fundamentals remain intact. Of course, JNJ stock is one of those that comes pretty close to being a SWAN stock because it requires relatively little recurring due diligence. However, given the significance of the Consumer Health split-off completed in 2023, I believe a more in-depth discussion was warranted. While it is not too surprising that the Innovative Medicine segment is also the clear leader in terms of profitability (profit before tax segment margins, Figure 6), I think it is worth noting that Consumer Health’s profit margin has improved over the years – slowly but surely. Nestle Purina is incredibly optimistic about the potential commerce opportunities and societal impact its Petivity IoT device holds.

  1. A federal bankruptcy judge in April temporarily halted nearly 40,000 talc lawsuits through mid-June.
  2. And products in the essential health division, including baby products, mouthwash and dental rinses, sanitary protection and wound care, saw $4.6 billion in net sales, representing 31% of all-in revenue.
  3. Chevron has been laser-focused on improving its investment returns by concentrating capital spending on its highest-return opportunities.
  4. Both shared insight into how they’re finding success in using data culled from the Walmart Connect and Luminate data platforms, as well as other technologies, at a Walmart-hosted panel at CES.

The transaction led to a significant decrease in shares outstanding, partly due to the treatment as a split-off and the repurchase of shares in 2023 (approx. $4.8 billion). As a result, earnings per share (EPS) and other per share metrics will not decrease due to the now lower earnings https://forex-review.net/ and cash flows. On the contrary, in its Q3 earnings release, JNJ raised its adjusted operating sales guidance to a midpoint of 7.5%, an increase of 80 basis points from the prior quarter’s guidance. About KenvueKenvue is the world’s largest pure-play consumer health company by revenue.

Johnson & Johnson to Participate in the Goldman Sachs 44th Annual Global Healthcare Conference

According to MedTech Europe, the continent’s medical technology trade association, Europe’s contributions to healthcare technologies include “significant advances in areas including cardiac pacemakers, deep brain stimulation and intravascular ultrasound.” Kenvue and its affiliates undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or developments or otherwise. Formerly the Consumer Healthcare division of Johnson & Johnson,[2] Kenvue is the proprietor of well-known brands such as Aveeno,[3] Band-Aid,[4] Benadryl, Zyrtec,[5] Johnson’s,[6] Listerine,[7] Mylanta, Neutrogena,[3] Tylenol,[7] and Visine. While its share price is down, the experiential property owner is growing briskly. Its revenue surged 20% year-over-year in the third quarter, while its adjusted funds from operations (FFO) were up by nearly 11% per share. VICI is benefiting from rising rental rates and an ever-expanding portfolio.

The idea is that spin-offs lead to forced selling by mutual funds and index funds for whom the spun stock no longer fits their investment mandate. Over time, however, the forced selling ends, and the newly separated stock rises to match its fundamental value. The EMEA (Europe, Middle East, and Africa) and Asia-Pacific regions each generated 21% of sales last year, with Latin America accounting for the balance. Johnson & Johnson, after spinning off Kenvue, will continue to own 92% of the voting power in the newly formed company. This structure means that Johnson & Johnson, not new shareholders, will be able to control the outcome of matters submitted to shareholders for approval.

While you might expect the high bar set by European regulators to act as a barrier, they arguably serve more as a barometer for excellence. If a product is deemed acceptable under the strict regulatory standards of the EU, investors can rest assured it’s of the highest quality. More importantly, a company that can weather trade99 review scrutiny in Europe should have little trouble going to market elsewhere. Kenvue sold 172.8 million shares in the offering, raising $3.8 billion and putting the company at a valuation of roughly $41 billion. Annual sales growth through 2025 is projected to be about 3% to 4% globally, according to the filing.

What is Kenvue? 8 important things to know about us

The company’s Aaa credit rating and its balanced maturity profile are further aspects to consider when comparing Johnson & Johnson’s excellent position to other companies in the healthcare space. Clearly, the parent company’s operating results and free cash flow will be impacted by litigation-related payments for years and decades to come. As I discussed in my last article on JNJ, I expect the ongoing litigation to impact JNJ’s cash flow by $400 million to $600 million annually before taxes.

Kenvuers in action: Giving back and creating change

Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates” and other words of similar meaning. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kenvue and its affiliates. J&J faces thousands of allegations that its talc baby powder and other talc products caused cancer.

Seeking to cash in on their strong total return potential

A federal bankruptcy judge in April temporarily halted nearly 40,000 talc lawsuits through mid-June. That decision was part of J&J’s second attempt to settle talc claims in bankruptcy proceedings. But Kenvue said in the filing that “such indemnity may not be sufficient” to protect the new company against the full amount of liabilities. But Kenvue will assume only talc-related liabilities that arise outside the U.S. and Canada, according to its IPO filing from January.

German-Irish medtech company LUMA Vision — formerly OneProjects — is developing a new technology platform that it believes will revolutionize the treatment of cardiac arrhythmias and atrial fibrillation. Known as VERAFEYE, the technology will leverage data analytics and advanced imaging to provide physicians with a four dimensional view of the heart. The startup raised $17 million to support the development of its technology in 2021. Based in Austria, Biome Diagnostics’ BiomeOne utilizes microbiome analysis to help determine how a cancer patient will likely respond to immunotherapy. It is the first diagnostic test of its kind, with multiple potential applications in personalized healthcare. The startup was recently granted the prestigious Alex Casta Audience Award via the EIT Health Catapult 2023 competition.

A new view of care

Its commitment to shareholder value through dividends and rock-solid balance sheet make it a staple in diverse portfolios. Johnson & Johnson JNJ, will be reporting its fourth-quarter earnings on Tuesday. Wall Street is expecting the company to report $2.28 in EPS and $20.99 billion in revenue, as it reports before market hours. A look at the relative share of Consumer Health shows that the segment has made a relatively small contribution to JNJ’s consolidated sales for at least the last seven years (Figure 5). In a report released on January 16, Nik Modi from RBC Capital maintained a Buy rating on Kenvue, Inc. (KVUE – Research Report), with a price target of $25.00. Bimbo Bakeries USA is leveraging consumer insights and media data to help shape its direct-store delivery (DSD) and product strategies, and results are paying off via improved fill rates at Walmart.

JNJ’s Innovative Medicine and MedTech segments are similarly well diversified. In its former Pharmaceutical segment (Figure 2), the company focused on immunology (primarily Stelara and Tremfya, $9.7 billion and $2.7 billion, +7% and 25% year-over-year respectively) and oncology drugs (primarily Darzalex, $8.0 billion, +32% year-over-year). TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

It also represents a significant opportunity thanks in no small part to considerably lower valuations compared to North America. Investors seeking to take advantage of this opportunity could do so through a holding company targeting the EU — one with plans to expose its investments to North America. These actions have bolstered positions in Self Care, Skin Health and Essential Health. The IPO still leaves J&J liable for thousands of allegations that its talc baby powder and other talc products caused cancer. Those products fall under the company’s consumer-health business, now Kenvue, but the spinoff will assume only talc-related liabilities that arise outside the U.S. and Canada, according to its IPO filing from January. Johnson & Johnson’s consumer health business Kenvue priced its IPO at $22 per share Wednesday, toward the high end of its stated range, in an upsized deal that would bring in about $3.8 billion.

The spinoff, the biggest IPO since EV maker Rivian went public in November 2021, alone may not completely turn around the moribund IPO market, which plummeted in 2022. We are committed to continuously improving our sustainability efforts through our brands, packaging and operations, delivering on the expectations of today’s consumers. We’ve always believed in the power of new perspectives and insights to drive innovation. That’s why our iconic brands have helped generations take care of themselves and their loved ones for more than 135 years.

The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate. At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress.