JNJango Unchained

Matt_Likes_Analysis · April 23, 2013, 2:41pm

What is with this stock? Does anyone track JNJ? How does JNJ look over time? Is this the most expensive JNJ has ever been relative to its growth rate? I mean ~3.8x Sales, ~3.8x Book, ~17x earnings, 1-3% revenue growth, maybe 5-6% earnings growth after buybacks. am i nuts? what is with the entire U.S. health care sector. what am i missing?

it is seemingly apparant misvaluation like that seen in JNJ shares that make me extremely wary of this rally. furthermore, Kroger being up 75% in 6 months, nuts. the last time KR climbed at this rate was 1999-2000. just saying.

krazykanuck · April 23, 2013, 3:02pm

I haven’t looked at JNJ in a couple of years and have never owned it. Consumer staples are hot right now (food companies, etc) and I’d put it in that category as well as in health care. HC has a tailwind in part since obamacare, we’ve proven as a country that we’re going to do absolutely nothing to arrest health care cost inflation, which should continue to be a good thing for JNJ. Can’t speak to the relative valuation of it though.