5-Star Stocks Poised to Pop: Johnson & Johnson

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health-care products behemoth Johnson & Johnson (NYSE: JNJ) has earned a coveted five-star ranking.

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

J&J facts

Headquarters (founded)

New Brunswick, N.J. (1886)

Market Cap

$156.87 billion

Industry

Pharmaceuticals/Health Care

Trailing-12-Month Revenue

$62.58 billion

Management

Chairman/CEO William Weldon (since 2002)

CFO Dominic Caruso (since 2007)

Major Brands

Band-Aid, Listerine, Neutrogena, Sudafed, Tylenol

Return on Equity (average, last three years)

26.9%

Dividend Yield

3.4%

Competitors

Procter & Gamble (NYSE: PG)

Eli Lilly (NYSE: LLY)

CAPS Members Bullish on JNJ Also Bullish on

General Electric (NYSE: GE)

Apple (Nasdaq: AAPL)

CAPS Members Bearish on JNJ Also Bearish on

Google (Nasdaq: GOOG)

Microsoft (Nasdaq: MSFT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 11,718 of the 12,126 members who have rated J&J -- or 96.6% -- believe the stock will outperform the S&P 500 going forward. These bulls include jed71 and llgrout.

Just last month, jed71 tapped J&J as an ideal way to recession-proof your portfolio:

If the "stuff" hits the fan, you want to be in the consumer staples, like the [Johnson & Johnsons] of the world. I tend to think things will get worse in the intermediate term and this company will continue to outperform the S&P. It truly provides products people need, not the things they want. Also nice dividend, whilst you wait to cash in.

In an earlier pitch from spring 2008, llgrout expands on J&J as a dynamic defensive play:

A good solid company that I think very few could disagree with. They make the products that people have to have despite the state of the economy. They are good products and consumables, so folks will keep buying them over and over. The company is very well run. They stay up on what consumers want in a changing world, and it has already been mentioned that they have good R&D. It has the potential to go higher, but I would not expect anything in the extreme. Again, my opinion is a good solid gainer over time.

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 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson and Procter & Gamble are Motley Fool Income Investor picks. Apple is a Stock Advisor selection, Google is a Rule Breakers recommendation, and Microsoft is a choice of Inside Value. The Fool owns shares of Procter & Gamble. The Fool's disclosure policy always gets a perfect score.

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