Investing is a long-term game; a little bit of patience and a strong risk appetite is essential if you want to see big wins. I believe healthcare juggernaut Johnson & Johnson (JNJ -1.15%) and rising cannabis multi-state operator (MSO) Curaleaf Holdings (CURLF -5.94%) are two companies poised for this kind of success, both capable of reaping massive returns for investors.
Johnson & Johnson reported impressive numbers in its most recent earnings, and Curaleaf is set to post first quarter results in early May. Let's take a look at why these two companies are best bets for investors who are looking to earn the big bucks over the long haul.
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1. Johnson & Johnson
Johnson & Johnson is the parent company of popular brands like Listerine, Neutrogena, and Benadryl, which have captured the market globally. The company has a diversified business, which is its competitive advantage in this volatile market. Johnson & Johnson operates through three segments: Consumer Health, Pharmaceutical, and MedTech (previously known as Medical Devices). Last November, Johnson & Johnson announced plans to spin off its consumer segment into a new publicly traded company. The company reclassified some international over-the-counter drugs from the pharmaceutical segment to Consumer Health; this segment reported a loss of 1.5% in the first quarter of 2022.
But it's the Pharmaceutical and MedTech segments which are taking the company to new highs. This is evident from Johnson & Johnson's first quarter results, which were released on April 19. In the first quarter of this year, the Pharma segment grew by 6.3% compared to the same period in the year prior, and MedTech grew by 5.9%.
Overall, sales for the first quarter grew 5% to $23.4 billion, with a 3% increase in earnings per share (EPS) to $2.67, and beating Wall Street's estimate of $2.58. CEO Joaquin Duato noted in a press release, "Our first quarter results demonstrate strong performance across the enterprise, despite macro-economic headwinds."
The company adjusted expected 2022 revenue to a range of $94.8 billion to $95.8 billion, down from its earlier estimates of $95.9 billion to $96.9 billion. Adjusted EPS expectations were also cut short, landing between $10.15 and $10.35. Johnson & Johnson suspended guidance on its COVID-19 vaccine sales due to uncertainty of supply and demand. But since the company doesn't earn a profit from vaccine sales, its earnings won't be affected.
Driven by this strong quarter, Johnson & Johnson, which is already considered a Dividend King, hiked its quarterly dividend by 6.6% to $1.13 per share -- good news for shareholders. This marks the company's 60th consecutive annual dividend increase. It also shows the business' impressive ability to balance stability with high growth. This healthcare company is a safe bet for investors who want to grow their money and also earn a regular income through dividends.
2. Curaleaf Holdings
This Massachusetts-based cannabis grower is outshining its peers with close to $1.2 billion in revenue for the trailing 12 months. Over the last two years, Curaleaf's strategic and well-timed acquisitions of cannabis products, manufacturers, and dispensaries have contributed to the company's consistent performance. Recent acquisitions include Select, Curaleaf NJ, Blue Kudu, Remedy, and Grassroots.
For the full year, its total revenue jumped an outstanding 93% to $1.2 billion. Despite this remarkable growth, the company hasn't seen green on its bottom line. But adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) keep rising, coming in at $298 million for 2021 and representing 107% year over year growth. It ended the year with a total of 117 dispensaries.
Most of these acquisitions have yet to show their full potential. But Curaleaf will report its first-quarter results sometime in the first week of May; investors can expect another good quarter from Curaleaf considering it is aggressively expanding again this year. Analysts expect a 25% year-over-year jump in revenue to $324 million in Q1.
In its fourth quarter, Curaleaf acquired MSO Tryke Companies and Arizona dispensary Natural Remedy Patient Center. It has opened five new dispensaries in the fourth quarter of 2021 alone, bringing its total retail operations to 126 as of March 3.
The industry is still in a nascent stage, but analysts expect it could double in value to $72 billion by 2030. The cannabis industry is still a limited legal market in the U.S., and yet Curaleaf has grown revenue at drastic rates -- company is a hot buy with enormous opportunities to continue expansion in the future.
