Is Johnson & Johnson Stock a Buy?

Core Viewpoint - Johnson & Johnson is focusing on growth through its medical devices and innovative medicines segments after spinning off its consumer health business, but investor confidence remains low due to ongoing legal challenges [1][2]. Business Performance - The company reported $21.4 billion in sales for the first three months of 2024, with a 2.3$5 billion in peak annual sales [5]. Legal Challenges - Johnson & Johnson is facing significant legal battles related to its talc products, with ongoing lawsuits claiming they caused ovarian cancer. The company is attempting a selective bankruptcy filing to manage these liabilities [2][3]. - The current settlement plan of $6.5 billion does not include claims related to mesothelioma, focusing instead on ovarian cancer cases, which constitute the majority of lawsuits [3]. Investment Considerations - The stock is currently trading at a modest 14 times its estimated future earnings and offers a dividend yield of 3.3%, making it potentially appealing for value investors [6]. - Despite the potential for modest growth, the ongoing legal issues may lead to substantial litigation expenses, prompting some investors to consider alternative options [7].