Shares of Johnson & Johnson (NYSE:JNJ) were up 1.93% at the top of the noon hour on October 11. The stock is up 18% in 2017 and 15% year over year. Johnson & Johnson is an American multinational that packages and manufactures pharmaceuticals, medical devices, and consumer goods.
This latest surge came after several analysts upgraded the stock following the planned acquisition of biotech company Actilion for $30 billion. Analysts are also expecting stronger third quarter results.
The company last released its second quarter results on July 18. Net earnings fell to $3.83 billion from $4 billion in Q2 2016. The company’s sales also missed analyst expectations, but the aforementioned Actilion acquisition still boosted the stock following the report.
Johnson & Johnson stock boasts a dividend of $0.84 per share representing a 2.4% dividend yield. Its dividend payouts have also gained favour for the company among analysts. With a central focus on its sales analysts have also pointed to its strong pharmaceuticals division that will be bolstered by the Actilion acquisition.
This company and others have been watching the ongoing U.S. healthcare debate intently. After a number of failures to successfully repeal the Trump administration has moved on to a massive tax reform initiative. U.S. companies are expected to benefit hugely from the 15% drop in corporate tax rate contained in the reform.
Johnson & Johnson comes in highly valued ahead of its third quarter results so potential buyers should be somewhat cautious, but as a long-term buy this is still a very solid stock.
