Johnson & Johnson (JNJ)
Market Cap: $280 billion
Current Dividend Yield: 2.7%
If you’re looking for pharmaceuticals that have taken their share of lumps over the past few years, Johnson & Johnson (JNJ) must be near the top of your list.
Massive quality-control problems in products ranging from common over-the-counter medications such as Tylenol, Benadryl and Motrin to high failure rates in hip prostheses and recalls of insulin syringes have weighed on JNJ stock since 2009, triggering thousands of lawsuits and a tarnished reputation.
But CEO Alex Gorsky is working to revive JNJ’s fortunes and reputation, settling lawsuits and moving the company forward. JNJ’s quarterly earnings of $1.54 a share, which it reported on Tuesday, easily beat Wall Street’s expected $1.48 EPS. Revenue for the quarter was $18.11 billion, a hair above analysts’ expected $18 billion.
JNJ has a well-diversified product line and strong international sales; the company’s drug pipeline includes innovative treatments like Vokanamet for Type 2 diabetes. Last month, JNJ announced its’ Janssen Pharmaceuticals unit would team with biotech startup Alector on Alzheimer’s treatments.
JNJ had a tough start to 2014, dropping nearly 9% between Jan. 17 and Feb. 4, but JNJ stock has rebounded nicely since then, gaining more than 8% since early March.