The market has thrown a tantrum over recent weeks following tariff news and other economic data pointing to a slowing consumer. While it’s certainly been a forgettable period, several stocks, including Coca-Cola (KO) , Philip Morris (PM) , and Johnson & Johnson (JNJ) , have remained strong over the past month, as shown below.Image Source: Zacks Investment ResearchAll three reflect defensive deployments, with their products able to carry steady demand through many economic backdrops. Let’s take a closer look ...

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's future earnings and financial health [4] - Momentum Score evaluates stocks based on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Johnson & Johnson (JNJ) Analysis - Johnson & Johnson is recognized for its diversified business model, operating in pharmaceuticals and medical devices with over 275 subsidiaries [11] - JNJ holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating solid performance potential [12] - The company has a forward P/E ratio of 15.63, making it attractive for value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate for fiscal 2025 increasing by $0.03 to $10.58 per share [12] - JNJ's average earnings surprise stands at 4.4%, further supporting its investment appeal [12][13]

Core Viewpoint - The market is experiencing a sell-off due to tariff implications and rising geopolitical tensions, yet stocks like Johnson & Johnson (JNJ), Eli Lilly (LLY), and Pfizer (PFE) are standing out as potential investment opportunities [1]. Group 1: Johnson & Johnson (JNJ) Valuation - JNJ is currently trading below its decade-long median of 16.4X forward earnings, with a peak of 20.1X over the last 10 years [2]. - The stock has a beta ratio of 0.47, indicating it is less volatile than the market benchmark [2]. Group 2: Investment Outlook - JNJ stock has a Zacks Rank of 3 (Hold) after a significant year-to-date rally, suggesting that while there may be better buying opportunities near 52-week peaks, further price increases are possible [3]. - The company is viewed as a hedge against recent market volatility due to its steady growth and reasonable valuation [3].

In the latest trading session, Johnson & Johnson (JNJ) closed at $167.28, marking a +1.37% move from the previous day. This move outpaced the S&P 500's daily loss of 1.76%. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 2.64%.Shares of the world's biggest maker of health care products witnessed a gain of 8.46% over the previous month, beating the performance of the Medical sector with its gain of 1.11% and the S&P 500's loss of 1.26%.Investors will be eagerly watching for the performan ...

Group 1: PepsiCo - PepsiCo has a current dividend yield of 3.5%, significantly higher than the S&P 500's 1.3%, providing $3.50 of annual dividend income for every $100 invested compared to $1.20 from the S&P 500 index fund [3] - The company has a strong history of dividend payments, recently announcing a 5% increase in its payout, marking the 53rd consecutive year of annual dividend increases, placing it among the elite Dividend Kings [4] - PepsiCo aims for organic revenue growth of 4% to 6% annually, which is expected to drive high-single-digit earnings-per-share growth, supported by a strong balance sheet that facilitates acquisitions [5] Group 2: Johnson & Johnson - Johnson & Johnson offers a dividend yield of 3%, with a record of increasing its dividend for 62 consecutive years [6] - The company has a robust financial profile, with a market cap of nearly $400 billion, $12 billion in net debt, and $20 billion in free cash flow, easily covering its $11.8 billion dividend payout [7][8] - Significant investments in research and development ($17.2 billion last year) and inorganic growth opportunities ($32 billion committed) are expected to enhance revenue and cash flow, allowing for continued dividend increases [8] Group 3: Prologis - Prologis has a dividend yield of 3.3% and recently raised its payment by 5%, aligning with S&P 500 averages despite a slowdown in warehouse space demand [9][10] - The company anticipates a rebound in leasing activity as interest rates decline, which is expected to drive rental income growth [10] - Prologis is well-positioned for long-term growth in logistics space demand, supported by a vast land bank and a strong financial profile for funding development projects and acquisitions [11] Group 4: Investment Strategy - PepsiCo, Johnson & Johnson, and Prologis are identified as high-quality, high-yielding dividend stocks, providing growing streams of passive income through steadily increasing payouts [12]

Core Viewpoint - Three major healthcare stocks, Johnson & Johnson, Novartis, and Pfizer, are identified as strong dividend investment opportunities due to their solid financials and growth prospects. Johnson & Johnson - Johnson & Johnson has a remarkable dividend history, having raised its payouts for 62 consecutive years, qualifying it as a Dividend King [2] - The company faces legal challenges related to its talc-based products, which have resulted in numerous lawsuits alleging cancer risks [2][3] - Despite these legal issues, Johnson & Johnson maintains a AAA credit rating, indicating strong financial health and the ability to meet obligations [4] - A proposed solution through a subsidiary aims to resolve over 99% of the lawsuits, suggesting progress in mitigating legal risks [5] - The company has a diversified business model, with a strong medical device unit that reduces reliance on pharmaceuticals [5] - Johnson & Johnson's underlying business remains robust, making it a solid choice for income-oriented investors [6] Novartis - Novartis offers a high dividend yield of 3.5%, significantly above the S&P 500 average of 1.3%, and has increased its payout for 28 consecutive years [7] - The company has a payout ratio of around 64%, indicating potential for future dividend increases as growth continues [7] - Novartis targets sustainable growth of approximately 5% per year through 2029, with a strong pipeline of over 100 projects across various therapeutic areas [8] - The stock is valued at just 13 times projected future earnings, providing a margin of safety for investors seeking high yields [9] - Novartis is considered an underrated buy due to its steady growth and reliable dividend payments [9] Pfizer - Pfizer boasts an ultra-high forward dividend yield of 6.5%, with management committed to maintaining and growing this payout [11] - The company has a strong track record of dividend payments, with 345 consecutive quarterly payments and 16 years of increasing dividends [12] - Despite a decline in COVID-19 sales and a looming patent cliff, Pfizer has strong growth drivers, including cancer drugs and migraine therapies [13] - The stock is trading at a forward price-to-earnings ratio of 9.07 and a low PEG ratio of 0.18, indicating it is undervalued [14] - Pfizer's ability to generate sufficient free cash flow supports its dividend commitments, making it an attractive investment [11][14]

Core Viewpoint - The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has recommended the approval of daratumumab subcutaneous (SC) formulation for newly diagnosed multiple myeloma (NDMM), which would make it the only anti-CD38 therapy available for all patient types in the frontline setting [1][2][5]. Group 1: Company Developments - Janssen-Cilag International NV, a Johnson & Johnson company, announced the CHMP's positive recommendation for daratumumab SC in combination with bortezomib, lenalidomide, and dexamethasone for adult patients with NDMM [1][5]. - The recommendation is based on the results from the Phase 3 CEPHEUS study, which demonstrated improved progression-free survival for patients receiving daratumumab-VRd compared to standard VRd [1][2][5]. - Daratumumab has been a foundational therapy in multiple myeloma treatment, with over 618,000 patients treated globally since its launch [5][6]. Group 2: Study Insights - The CEPHEUS study (NCT03652064) is an international, randomized, open-label Phase 3 trial that enrolled 395 patients with NDMM who were ineligible for stem cell transplantation [2][5]. - The primary endpoint of the study was the overall Minimal Residual Disease (MRD) negativity rate, with a median patient age of 70 years [2][5]. - Results from the CEPHEUS study were presented at the 2024 International Myeloma Society Annual Meeting and the 2024 American Society of Hematology Annual Meeting [1][2]. Group 3: Product Information - Daratumumab is the only CD38-directed antibody approved for subcutaneous administration in multiple myeloma treatment [5][6]. - The drug works by binding to CD38, a surface protein present on myeloma cells, inhibiting tumor cell growth and causing myeloma cell death [5][6]. - Data from ten Phase 3 clinical trials have shown significant improvements in progression-free survival and/or overall survival with daratumumab-based regimens [5][6].

Core Insights - Medtronic and Johnson & Johnson are highlighted as strong dividend-paying stocks with healthy financial profiles, making them attractive for investors seeking reliable income streams [1][12] Medtronic - Medtronic offers a dividend yield of 3.1%, significantly higher than the S&P 500's 1.2%, translating to $3.10 in dividends per $100 invested compared to $1.20 for the S&P 500 [2] - The company generated $4.5 billion in net cash from operating activities in the first nine months of the year, with $3.1 billion in free cash flow after investing $1.4 billion in capital expenditures, easily covering $2.6 billion in dividends [3] - Medtronic repurchased nearly $3 billion of its stock and has a strong balance sheet with A/A3 bond ratings, allowing for potential acquisitions [4] - The company has a history of increasing dividends for 47 consecutive years at a compound annual growth rate of 16% [5] - Expected organic revenue growth of about 5% this fiscal year, with a robust pipeline of product approvals, indicates continued growth potential [6] Johnson & Johnson - Johnson & Johnson also offers a 3.1% dividend yield, supported by a strong financial profile and an AAA bond rating, one of the highest globally [7][8] - The company has a market cap of nearly $400 billion, with only $12 billion in net debt and generates approximately $20 billion in free cash flow annually, covering its $11.8 billion dividend payments [8] - Johnson & Johnson has committed $32 billion to strategic acquisitions over the past year, including a $14.6 billion deal for Inter-Cellular Therapies, enhancing its product portfolio [9] - The company has increased its dividend for 62 consecutive years, placing it among the elite Dividend Kings [10] Conclusion - Both Medtronic and Johnson & Johnson exhibit strong cash generation and financial flexibility, positioning them well for sustained dividend growth and long-term investment appeal [12]

Core Viewpoint - Johnson & Johnson's recent earnings report shows a mixed performance with a slight sales increase but a decline in earnings, raising questions about future growth potential and market reactions leading up to the next earnings release [1][20]. Earnings Performance - Q4 2024 earnings were reported at $2.04 per share, beating the Zacks Consensus Estimate of $2.00, but reflecting a 10.9% decline year-over-year [2]. - Adjusted earnings, excluding certain expenses, were $1.41 per share, down 17.1% from the previous year [2]. - Total sales reached $22.52 billion, slightly exceeding the Zacks Consensus Estimate of $22.51 billion, with a year-over-year increase of 5.3% [3]. Sales Breakdown - Domestic sales rose 10% to $13.2 billion, while international sales declined 0.7% to $9.32 billion [4][5]. - The loss of exclusivity for Stelara negatively impacted revenue growth by 290 basis points [4]. Segment Performance - Innovative Medicines segment sales increased 4.4% to $14.33 billion, driven by key products like Darzalex and Tremfya, despite a decline in Stelara sales [6][7]. - MedTech segment sales were $8.19 billion, up 6.7% year-over-year, but missed estimates due to competitive pressures and challenges in China [16][18]. Future Guidance - For 2025, the company expects sales between $89.2 billion and $90.0 billion, indicating growth of 0.5%-1.5% [21]. - Adjusted earnings per share are projected to be in the range of $10.50-$10.70, suggesting growth of 5.2% to 7.2% [24]. - The company anticipates operational sales growth to be stronger in the second half of 2025 compared to the first half [24]. Market Sentiment - Recent estimates for the stock have been trending downward, indicating a cautious outlook among investors [27][29]. - Johnson & Johnson currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the near term [29].

Core Insights - Johnson & Johnson announced that the Phase 3 ASTRO study of TREMFYA® (guselkumab) achieved primary and all secondary endpoints at Week 12 in patients with moderately to severely active ulcerative colitis, showing statistically significant and clinically meaningful improvements compared to placebo [1][2][29] Group 1: Study Results - At Week 12, patients treated with TREMFYA® 400 mg SC induction showed significantly greater clinical remission (27.6% vs 6.5%; P<0.001), clinical response (65.6% vs 34.5%; P<0.001), and endoscopic improvement (37.3% vs 12.9%; P<0.001) compared to placebo [5][6][7] - The study demonstrated statistically significant results across endpoints in both biologic and JAK inhibitor-naïve and refractory patients [1][2] Group 2: Safety Profile - Safety data from the ASTRO study were consistent with the established safety profile of TREMFYA®, with similar proportions of patients experiencing adverse events across both TREMFYA® and placebo groups [2][3] Group 3: Treatment Implications - TREMFYA® is positioned to transform the treatment paradigm for ulcerative colitis, pending approval for a fully subcutaneous induction and maintenance regimen, which would be the first of its kind for an IL-23 inhibitor [3][12] - Applications for TREMFYA® for both ulcerative colitis and Crohn's disease have been submitted in Europe, and it received FDA approval in September 2024 for treating moderately to severely active ulcerative colitis [3][12]