Johnson & Johnson (NYSE:JNJ) is one of the largest American companies operating in the health-care space. It is one of the biggest players developing a COVID-19 vaccine. The world is waiting on pins and needles for a vaccine breakthrough in the weeks and months to come.
It is likely that Johnson & Johnson will be one of the companies to cross the finish line. With that in mind, should you look to add the stock today?
Shares of Johnson & Johnson have dropped 3.9% in 2020 as of close on October 29. The stock is still up 9.2% year over year. Johnson & Johnson is set to resume its vaccine trials that had been briefly halted by U.S. regulators.
The pressure from the U.S. government has been intense, with the Trump administration pushing hard for a vaccine approval and distribution by early 2021. If the company achieves approval, Johnson & Johnson will be one of several companies that will rake in profits from a viable vaccine.
The stock last possessed a price-to-earnings ratio of 21. This puts Johnson & Johnson in favourable value territory relative to industry peers. Moreover, it offers a dividend yield of 2.9%.
A vaccine will provide a huge boost to Johnson & Johnson, but also the market at large. Investors should consider adding this discounted health-care star as we move into November.
