3 Things About Johnson & Johnson That Smart Investors Know
We all know Johnson & Johnson (NYSE: JNJ) thanks to top consumer products like Band-Aid bandages and the company's script logo. But times are changing. J&J recently spun off its consumer health business into a separate entity called Kenvue, and the healthcare giant is even changing its famous logo -- red printed letters will replace the cursive.
Meanwhile, J&J's share price doesn't reflect the idea of these exciting new times. The shares have slipped about 9% this year, missing out on the stock market rally. I wouldn't consider this a reflection of the company's potential though. As we head toward a new bull market, investors have favored growth stocks over steady and safe industries like healthcare, which tend to outperform in more difficult market environments. But before you turn your back on J&J, let's consider three points that smart investors know about the company.
J&J's consumer health business brought in about $14 billion in revenue last year, so you may be wondering why spinning this unit off is a good idea. It's important to consider the unit as part of the bigger picture. J&J's other units -- pharmaceuticals and medtech -- brought in $52 billion and $27 billion, respectively. These businesses also grew revenue more than 6% last year, while consumer health increased revenue 3.9%.
Source Fool.com
