5-Star Stocks Poised to Pop: Johnson & Johnson

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, health-care products giant Johnson & Johnson (NYSE: JNJ  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Johnson & Johnson's business, and see what CAPS investors are saying about the stock right now.

J&J facts

Headquarters (Founded)

New Brunswick, New Jersey (1885)

Market Cap

$187.16 billion

Industry

Pharmaceuticals

TTM Revenue

$62.25 billion

Management

CEO William Weldon (since 2002)
CFO Dominic Caruso (since 2007)

Brands

Band-Aid, Listerine, Sudafed, Tylenol

Return on Equity (avg. last three years)

26.7%

CAPS members bullish on JNJ also bullish on

Microsoft (Nasdaq: MSFT  )
Procter & Gamble (NYSE: PG  )
Altria (NYSE: MO  )

CAPS members bearish on JNJ also bearish on

Starbucks (Nasdaq: SBUX  )
General Motors (NYSE: GM  )
Google (Nasdaq: GOOG  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 2,092 of the 2,147 All-Star members who have rated J&J -- 97% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include my fellow Fool TMFOrangeblood and msu2008, both of whom are ranked in the top 5% of our community.

In August 2006, TMFOrangeblood urged our community to:

Buy world-class consumer goods companies, reinvest the dividends, and then wait 30 years. Sounds boring, but that's a simplified version of Jeremy Siegel's advice for long-term wealth. [J&J] is among the best of the best, and will anchor my portfolio for decades.

A more recent pitch from msu2008 this past April expanded on J&J's recession-proof nature:

[J&J] sells everything from shampoo at the local grocery store to medical supplies. They have a well diversified product offering that consumers will continue to buy as the economy slows because there is always demand for theses necessities... Also, by being globally diversified, this company will gain from global growth throughout the next year.

What do you think about J&J, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Johnson & Johnson is a Motley Fool Income Investor recommendation. Microsoft and Starbucks are Inside Value picks. Starbucks is also a Stock Advisor selection and the Fool owns some shares of it. Google has been singled out by Rule Breakers. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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