Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company's Innovative Medicine segment offers products for various therapeutic areas, such as immunology, including rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; infectious diseases comprising HIV/AIDS; neuroscience, consisting of mood disorders, neurodegenerative disorders, and schizophrenia; oncology, such as prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; cardiovascular and metabolism, including thrombosis, diabetes, and macular degeneration; and pulmonary hypertension comprising pulmonary arterial hypertension through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. Its MedTech segment provides Interventional Solutions, including electrophysiology products to treat heart rhythm disorders; the heart recovery portfolio, which includes technologies to treat severe coronary artery disease requiring high-risk PCI or AMI cardiogenic shock; and neurovascular care that treats hemorrhagic and ischemic stroke. this segment also offers an orthopaedics portfolio that includes products and enabling technologies that support hips, knees, trauma, spine, sports, and other; surgery portfolios comprising advanced and general surgery technologies, as well as solutions for breast aesthetics, ear, nose, and throat procedures; contact lenses under the ACUVUE Brand; and TECNIS intraocular lenses for cataract surgery. It distributes its products to wholesalers, hospitals, and retailers, as well as physicians, nurses, hospitals, eye care professionals, and clinics. Johnson & Johnson was founded in 1886 and is based in New Brunswick, New Jersey.

Johnson & Johnson’s fundamental picture remains solid, but the current valuation already looks demanding relative to future growth. Revenue, net income, operating income, and EBITDA are all at high absolute levels and are generally growing, which supports the company’s intrinsic business value. Profitability is also strong: ROE, ROA, ROI, net margin, and operating margin are noticeably above the industry median, indicating the company’s ability to consistently generate returns on capital. At the same time, the trend in margins and returns compared with the stronger levels seen at the end of 2025 looks more mildly weakening than accelerating, so part of the business quality effect is already reflected in the share price. The main limiting factor is expensive valuation multiples: P/E, P/S, P/B, and P/FCF are significantly above industry medians, indicating a quality premium and reducing the potential for further upside without a new acceleration in growth. It is especially important that P/B and P/S are at very high levels, while P/FCF also does not look cheap, so the market is already paying for JNJ’s stability and brand strength. Leverage is generally manageable: debt/equity is around the median, and debt does not look excessive relative to the scale of assets and capital. However, liquidity is weaker than the industry norm, since the quick ratio and current ratio are below the median, which calls for caution, even if this is not critical for a large pharma/medtech company. Dividend yield has declined compared with previous periods, so the dividend argument is now less compelling than before. On the other hand, the balance sheet remains large and stable, with high equity and a substantial asset base, supporting credit quality and financial flexibility. Overall, this is the profile of a mature, profitable, defensive company, but without clear signs of undervaluation. For an investor, this means that fair value should be only slightly above the current benchmark: strong operating metrics are offset by elevated multiples and weaker liquidity. Therefore, a revision of the target price is justified to the upside, but not aggressively.

Johnson & Johnson

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

JNJ looks high-quality and profitable, but trades at a noticeable premium to the sector; strong margins and profitability are offset by expensive multiples and weak liquidity.

Key Points
Johnson & Johnson has a rare and impressive streak of consecutive annual dividend increases.
Merck is facing multiple challenges, but it is demonstrating that it can overcome them.
Dividend investing will never go out of style. It's one of the best ways to take advantage of the magic of compounding (by reinvesting dividends), which can significantly boost long-term returns. And there is evidence that, over the past few decades, dividend-paying stocks have significantly outperformed non-dividend payers. But choosing a random income stock won't do -- they aren't all created equal. Let's consider two dividend-paying companies that look like excellent long-term picks: Johnson & Johnson (NYSE:JNJ) and Merck (NYSE:MRK).
Image source: The Motley Fool.
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1. Johnson & Johnson
So far, it has been a good year for Johnson & Johnson, with the stock climbing 28%, compared to the S&P 500's 10% gain. One key reason for the company's performance is its strong financial results. Despite patent cliffs and government drug price negotiations, Johnson & Johnson is growing its revenue and earnings at a good clip. Second-quarter sales came in at $25.3 billion, up 6.6% year over year, while its adjusted earnings per share climbed 4.7% year over year to $2.90. Johnson & Johnson's recent financial results highlight its ability to overcome challenges.
It is doing so partly thanks to a large and diversified product lineup across pharmaceuticals and medical devices. It's difficult to find many healthcare companies more diversified than Johnson & Johnson, and that can help it perform well over the long run. Johnson & Johnson also continues to demonstrate its innovative abilities. The company's recent approvals include ICOTYDE, a medicine for plaque psoriasis, while its Ottava robotic-assisted surgery system, which could become an important growth driver down the road, has received marketing authorization.
Johnson & Johnson's pipeline features several dozen ongoing clinical trials, including some brand-new promising products. Beyond its core business, there has been some good news for Johnson & Johnson on other fronts recently. For instance, the company has moved closer to settling thousands of the talc-based lawsuits that have been a significant risk to the business for years. That's great news for investors.
Now turning to Johnson & Johnson's dividend program, it is also exceptional. The company has increased its payouts for 64 consecutive years, making it a Dividend King -- or a corporation with 50 consecutive years of dividend increases, at a minimum. Expect Johnson & Johnson to maintain healthy dividend growth over the next decade and deliver competitive returns, especially for those who reinvest dividends.
2. Merck
Merck should face increased competition for Keytruda, its biggest growth driver, moving forward. And the cancer drug will lose patent exclusivity by 2028. Meanwhile, the company's vaccine business, led by the HPV vaccines Gardasil and Gardasil 9 (which have sometimes been its most important products after Keytruda), has also faced headwinds in recent years. Can the stock really perform well through 2036? Yes, it can, and here is why.
Merck has already formulated a plan that should help it overcome the massive Keytruda patent cliff. It has earned approval for a subcutaneous formulation of the medicine -- called Keytruda Qlex -- that is much faster to administer and will help it retain patients beyond the original formulation's patent cliff. Merck has also earned approval for several new products that will help smooth out Keytruda-related losses.
Consider the company's second-quarter results. Its revenue increased 5% year over year to $16.6 billion. Sales of Winrevair, a recently approved treatment for pulmonary arterial hypertension, jumped 75% year over year to $588 million. Revenue from Capvaxive, a newer vaccine approved for pneumonia, climbed 42% year over year to $184 million. Further, Merck has several exciting pipeline candidates, including a personalized mRNA-based cancer vaccine it is developing with Moderna (NASDAQ:MRNA) that recently aced a phase 3 clinical trial in patients with melanoma. Merck should successfully navigate the Keytruda patent cliff, even if its sales initially decline, and perform well long after while still rewarding shareholders with regular dividend increases. Merck has increased its payouts by 93.79% over the past 10 years.
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2 Outstanding Dividend Stocks to Buy and Hold for 10 Years

(RTTNews) - Biotech and healthcare saw regulatory approvals, strategic partnerships, M&A activity, and a steady stream of clinical trial updates driving investor attention.
Notable developments include Axogen's planned acquisition of BioCircuit Technologies, Bluejay Diagnostics' partnership with Lovell Government Services, positive data from Roivant, AstraZeneca, Structure Therapeutics, and Pharvaris, and a Phase 3 miss for Novartis' del-desiran.
Let's dive into the details... FDA Approvals
Johnson & Johnson (JNJ) received CE Marking for its ACUVUE OASYS MAX 2-Week reusable contact lenses, designed to improve comfort and clarity for patients facing increased screen time and blue-violet light exposure. The lens will launch in select European markets later this year, with a broader rollout planned in 2027.
JNJ closed Thursday's trading (September 10, 2026) at $266.35, down 0.27%.
GSK plc (GSK) received Japanese approval for a new pre-filled syringe presentation of its shingles vaccine Shingrix, already approved in the market since 2018 for adults at risk of shingles. The expanded approval aims to improve convenience and broaden access, reinforcing Shingrix's position as the leading non-live, recombinant vaccine for shingles prevention.
GSK closed Thursday's trading at $48.12, down 1.05%
Deals
Axogen Inc.(AXGN) has entered into a definitive agreement to acquire BioCircuit Technologies, Inc., an advanced neural interface and bioelectronic devices developer, for $200 million in cash.
The transaction is expected to close in the fourth quarter and will add BioCircuit's FDA-approved NerveTape device to Axogen's portfolio, expanding its reach in nerve repair markets. Axogen plans to leverage its established sales force, surgeon relationships, and hospital contracting infrastructure to bolster market penetration.
AXGN closed Thursday's trade at $41.85, down 11.47%.
Femasys Inc. (FEMY) announced a partnership with CapexMD, which specialises in fertility financing, to expand patient access to its FemaSeed-led fertility portfolio, including FemVue and FemaSeed, through dedicated financing solutions. The partnership aims to reduce financial barriers to fertility care across OB/GYN practices and fertility centres.
The financing program will support access to FemaSeed Complete, an in-office intratubal insemination solution designed as a first-line fertility treatment.
FEMY closed Thursday's trade at $2.74, down 3.18%.
EpilepsyGTx, a biotechnology company focused on gene therapies for drug-resistant epilepsy, has entered into a collaboration with Viralgen, a subsidiary of AskBio Inc., which operates under Bayer AG (BAYN.DE), to accelerate the production of EPY201, EpilepsyGTx's lead investigational program for focal refractory epilepsy. The first-in-human clinical trial of EPY201 for focal refractory epilepsy is expected to begin in the first half of 2027.
Under the agreement, Viralgen will leverage its proprietary AAV production platform, designed to enable scalable, high-yield manufacturing across all AAV serotypes.
BAYN.DE closed Thursday's trading at 48.70 Euros, down 1.14%.
HCW Biologics Inc. (HCWB) announced that it has entered into a distribution agreement with Akron Biotech, a supplier of materials and accessory molecules for cell and gene therapy manufacturing, to commercialise HCW11-006, a multi-cytokine fusion molecule as a reagent used to support the production of human CAR-T cells for cancer, autoimmune and infectious diseases.
Under the agreement, HCW Biologics will supply research- and cGMP-grade HCW11-006, while Akron will market and distribute the reagent through its network of research institutions, biopharmaceutical companies and advanced therapy developers. HCWB closed Thursday's trading at $2.43, down 1.22%.
Bluejay Diagnostics (BJDX) announced a distribution, co-marketing and strategic partnership with Lovell Government Services, Inc. to support Bluejay's product access into the U.S. federal healthcare market, subject to FDA clearance or other required regulatory approvals.
Under the agreement, Lovell will serve as Bluejay's exclusive distributor for SDVOSB-designated and preferred federal procurement opportunities across the VA, DoD, Military Health System, and Indian Health Service.
BJDX closed Thursday's trade at $1.01.
Transgene SA (TNG.PA, TRGNF), which develops virus-based immunotherapies, and ProBioGen, a CDMO for biologics, vaccines, and viral vectors, announced that they have broadened the scope of their existing collaboration made in 2024, under which Transgene licensed ProBioGen's AGE1.CR.pIX suspension cell line technology platform for vaccine production.
Transgene's currently expanded license agreement is intended to strengthen its manufacturing capabilities.
TNG.PA closed Thursday's trade at 0.881 Euros.
Clinical Trials - Breakthroughs & Setbacks
Oncolytics Biotech Inc. (ONCY) announced positive preclinical results evaluating pelareorep, an investigational, intravenously delivered immunotherapy in combination with a pan-RAS inhibitor in a RAS-driven colorectal cancer model.
According to the company, the pelareorep combo reduced tumour growth compared to the control, showing that pelareorep activity was maintained in the presence of RAS inhibition, with no evidence of blocking between the two therapies. Oncolytics plans broader pelareorep testing with RAS inhibitors in RAS-driven tumour models.
ONCY closed Thursday's trade at $0.77, down 2.89%.
Disc Medicine, Inc. (IRON) presented positive initial results from the RESTORE-PV Phase 2 trial of DISC-3405, an investigational anti-TMPRSS6, in patients with polycythemia vera (PV), a rare blood cancer.
According to the company, treatment with DISC-3405 increased hepcidin and lowered serum iron, reducing phlebotomy (blood-removal procedures), controlling hematocrit (red-cell production), and improving symptom burden in patients with PV.
Key findings also included dose-proportional pharmacokinetics, elevated hepcidin, reduced serum iron, increased ferritin, mean hematocrit control, and fewer total phlebotomy events, with a generally well-tolerated profile. The company plans to provide additional data by the end of 2026. IRON closed Thursday's trade at $74.14, down 3.10%.
BioMarin Pharmaceutical Inc. (BMRN) announced that its Phase 3 CANOPY-HCH-3 study of VOXZOGO (vosoritide) in children with hypochondroplasia, a rare genetic skeletal condition, met its primary endpoint, showing statistically significant improvements in annualised growth velocity compared to placebo.
VOXZOGO is a C-type natriuretic peptide (CNP) already approved by the FDA to support the growth of children with achondroplasia starting from birth.
According to the company, VOXZOGO demonstrated statistically significant improvements across multiple measures of growth, including annualised growth velocity, standing height, height Z-score and arm span, with overall safety consistent with previous studies.
BMRN closed Thursday's trade at $65.51, up 1.71%.
Tyra Biosciences, Inc. (TYRA) reported initial results from its Phase 2 SURF302 study evaluating oral dabogratinib, an investigational oral FGFR3-selective inhibitor, in patients with FGFR3-altered low-grade intermediate-risk non-muscle invasive bladder cancer or LG IR NMIBC.
According to the company, dabogratinib at 60 mg once daily demonstrated an overall response rate (ORR) of 79%, and complete response (CR) was 64% in all patients (n=14), rising to 100% and 75%, respectively, in single-marker lesion patients (n=8), supporting the planned Phase 3 adjuvant strategy with a favourable safety profile.
TYRA closed Thursday's trade at $23.54, up 6.95%.
Pyxis Oncology, Inc. (PYXS) announced positive updated data from its ongoing Phase 1 monotherapy study of micvotabart pelidotin (MICVO), an investigational antibody-drug conjugate in patients with second-line and beyond recurrent/metastatic head and neck squamous cell carcinoma (R/M HNSCC).
According to the company, MICVO demonstrated rapid and deep responses, with a 36% confirmed objective response rate (cORR) and 94% disease control rate (DCR). In addition, survival outcomes include median progression-free survival (mPFS) of 6.2 months and a 12-month overall survival (OS) probability of 79%, with no new safety signals observed.
Pyxis plans to advance MICVO into a pivotal program, with initiation of the Phase 3 Headliner trial planned for mid-2027.
PYXS closed Thursday's trade at $3.27, down 3.25%.
AstraZeneca PLC (AZN) announced positive results from the Phase III OBERON and TITANIA trials evaluating Tozorakimab, an investigational IL-33-targeting monoclonal antibody in chronic obstructive pulmonary disease (COPD).
According to the company, Tozorakimab showed statistically significant and clinically meaningful efficacy in reducing moderate and severe exacerbations, with a generally well-tolerated safety profile, in chronic obstructive pulmonary disease (COPD) patients still experiencing exacerbations while on inhaled standard of care.
AZN closed Thursday's trade at $159.64, up 1.72%.
BrainsWay Ltd. (BWAY) reported results from a peer-reviewed pilot study evaluating its Deep Transcranial Magnetic Stimulation Technology (Deep TMS), a non-invasive neurostimulation technology that uses specialised coils to stimulate targeted brain regions in patients with major depressive disorder (MDD) and comorbid early-stage Alzheimer's disease.
The study included 12 patients who received 36 Deep TMS sessions using the H1 and H7 coils, and following the treatment, preliminary findings showed that 83.3% of patients achieved a response, defined as at least a 50% reduction in Patient Health Questionnaire-9 (PHQ-9) scores, while 50% achieved remission, defined as a PHQ-9 score of 4 or less in depressive symptoms following treatment.
BWAY closed Thursday's trade at $13.91, down 3.47%.
Roivant (ROIV) reported that the Phase 2 PHocus trial evaluating Mosliciguat, an investigational, once-daily inhaled soluble guanylate cyclase (sGC) activator, met its primary and secondary endpoints in adults with Pulmonary hypertension associated with interstitial lung disease. (PH-ILD).
According to the company, mosliciguat was well tolerated, with a favourable safety profile, and met its primary endpoint at week 16, delivering a clinically meaningful and statistically significant placebo-adjusted 56.3% reduction in pulmonary vascular resistance (PVR) (p0.0001). It also met key secondary endpoints, including a 35.2-meter improvement in six-minute walk distance and a 53.2% (357.7 pg/mL) reduction in NT-proBNP versus placebo, both clinically meaningful and statistically significant.
ROIV closed Thursday's trading at $40.94, down 2.08%.
Structure Therapeutics Inc. (GPCR) reported positive clinical data from its two lead oral small-molecule candidates: ACCG-2671, an investigational dual amylin and calcitonin receptor agonist evaluated in a Phase 1/2a single ascending-dose (SAD) trial, and aleniglipron, an oral GLP-1 receptor agonist being developed for chronic weight management in the ACCESS open-label extension (OLE) clinical trial.
According to the company, in the SAD trial, ACCG-2671 demonstrated a long half-life of about 6 days, supporting potential once-weekly dosing, with no serious adverse events (SAEs) or liver enzyme elevations. Based on these findings, the company has initiated the Phase 1/2a MAD portion, with topline data expected in the first half of 2027.
In the 72-week ACCESS OLE study data, participants receiving 180 mg of aleniglipron achieved up to 16.2% weight loss with no plateau, while placebo crossover patients starting at 2.5 mg showed improved tolerability.
GPCR closed Thursday's trade at $39.55, down 4.07%.
Spyre Therapeutics, Inc. (SYRE) reported positive 12-week induction results from Part A of its Phase 2 SKYLINE trial evaluating SPY003 in moderately to severely active ulcerative colitis.
The study met its primary endpoint, showing a statistically significant 10-point reduction in Robart's Histopathology Index at Week 12, alongside 20% clinical remission and 30% endoscopic improvement. SPY003 was generally well tolerated, with adverse events consistent with the IL-23 class.
SYRE closed Thursday's trading at $88.71, up 2.05%. Pharvaris Delivers Positive Phase 3 Data
Pharvaris N.V. (PHVS) announced topline results from the Phase 3 CHAPTER-3 trial of deucrictibant extended-release (XR) tablets, an investigational orally bioavailable small-molecule bradykinin B2 receptor antagonist for hereditary angioedema (HAE) prophylaxis.
The study met its primary endpoint, reducing mean monthly HAE attack rates by 83% versus placebo, with an 87% reduction in Type 1 or 2 patients. All secondary endpoints were achieved, and the therapy showed early-onset protection with a favourable safety profile.
Pharvaris plans to use the CHAPTER-3 results as the basis for marketing authorisation applications, with submissions beginning in the first half of 2027. The ongoing CHAPTER-4 OLE study is evaluating long-term prophylaxis with deucrictibant XR. The pivotal Phase 3 CREAATE study is assessing prevention of acquired angioedema (AAE-C1INH), with topline Part 1 data expected in first quarter of 2027.
PHVS closed Thursday's trading at $37.51, down 0.61%.
Novartis AG (NVS) reported that the pivotal HARBOR trial of del-desiran, an investigational antibody oligonucleotide conjugate in myotonic dystrophy type 1, failed to meet its primary endpoint of video hand opening time. The 54-week, placebo-controlled study enrolled 150 patients and assessed del-desiran every eight weeks.
While the primary goal was missed, Novartis noted evidence of clinical activity in secondary endpoints such as grip strength and mobility, with safety consistent with prior data. The company is reviewing the full dataset and plans to engage regulators on next steps.
NVS closed Thursday's trading at $137.48
For more biotechstock news visit rttnews.com.

Weekly Buzz: JNJ Wins FDA Nod; AXGN, HCWB Strike Deals; ROIV, AZN, GPCR Lead Clinical Trials

Eli Lilly and Company’s LLY portfolio is overwhelmingly driven by its popular GLP-1 medicines, Mounjaro and Zepbound. However, the company’s broader strategy is becoming increasingly clear — leverage the substantial cash flow generated by its cardiometabolic franchise to fund strategic acquisitions, expand its pipeline, and invest in research and development aimed at creating the next generation of growth drivers. Immunology is emerging as one of the most promising areas of this diversification strategy.
Lilly’s Immunology Portfolio Delivers Steady Revenue Growth
Lilly's Immunology portfolio generated $2.6 billion in revenues in the first half of 2026, up approximately 9% year over year. This accounted for about 6.1% of the company's total revenues of $42.7 billion during the period, highlighting that Immunology remains a relatively small contributor to Lilly's overall sales but is becoming an increasingly important source of diversification.
The portfolio comprises Taltz, Ebglyss, Omvoh and Olumiant, with Taltz, an IL-17A inhibitor, remaining the largest contributor. Taltz generated $1.6 billion in revenues in the first half of 2026, accounting for roughly 62% of Lilly's Immunology sales during the period.
Lilly Advances a Diversified Immunology Pipeline
Lilly's Immunology pipeline is considerably broader than its current commercial portfolio, with several mid- and late-stage programs that could expand its presence across a range of immune-mediated and gastrointestinal disorders.
Omvoh (mirikizumab) is being studied in late-stage studies in combination with tirzepatide for ulcerative colitis and Crohn's disease, while Ebglyss (lebrikizumab) is being evaluated in late-stage studies for perennial allergens and chronic rhinosinusitis with nasal polyps (CRSwNP). In its mid-stage pipeline, the company has eltrekibart, a chemokine-targeting antibody being evaluated in hidradenitis suppurativa and ulcerative colitis; simepdekinra (DC-853), an oral immunology candidate being studied in psoriasis; and an FXR agonist/mirikizumab combination being developed for Crohn's disease.
Interestingly, Lilly is also seeking to extend the potential applications of its incretin expertise beyond obesity and diabetes into gastrointestinal disorders. The company has initiated two phase II studies of brenipatide, its GIP/GLP-1 dual agonist, in irritable bowel syndrome, evaluating the candidate separately in patients with IBS with constipation (IBS-C) and IBS with diarrhea (IBS-D).
Acquisitions Strengthening LLY’s Immunology Franchise
Lilly has also been using acquisitions to accelerate its Immunology capabilities. The $2.4 billion acquisition of DICE Therapeutics, completed in 2023, added oral IL-17 inhibitors and an oral α4β7 integrin program to Lilly's portfolio. The 2024 acquisition of Morphic Holding added MORF-057, an oral α4β7 integrin inhibitor, further strengthening Lilly's inflammatory bowel disease or IBD pipeline. Last month, Lilly announced a definitive agreement to acquire clinical-stage biotech Merida Biosciences for around $2.9 billion. The acquisition will add Merida’s lead drug, MER511, which is in phase I development for Graves' disease and thyroid eye disease. Merida also brings MER769, an early-stage program targeting food allergies, asthma and other allergic diseases.
While Immunology remains much smaller than Lilly's cardiometabolic franchise, it is becoming an increasingly meaningful source of diversification, particularly as newer products such as Ebglyss and Omvoh gain market share. Importantly, Lilly is not relying solely on its existing products. Its pipeline spans dermatology, IBD, autoimmune diseases and allergy, while the DICE, Morphic, and Merida transactions have added differentiated mechanisms and platforms. Lilly's second-quarter results also showed that revenues from its Immunology, Oncology and Neuroscience key products collectively increased 121% year over year, highlighting the rapid contribution of newer non-GLP-1 medicines.
Competition to LLY’s Immunology Products
Lilly faces strong competition across its Immunology portfolio from both established biologics and newer targeted therapies. Taltz competes with IL-17 inhibitors such as Novartis’ NVS Cosentyx and UCB’s Bimzelx, as well as IL-23 inhibitors and other biologics used in psoriasis and psoriatic arthritis. Ebglyss faces competition from Sanofi/Regeneron’s Dupixent and oral JAK inhibitors such as AbbVie’s ABBV Rinvoq and Pfizer’s Cibinqo in atopic dermatitis.
Omvoh competes in the highly competitive IBD market against products such as AbbVie’s Skyrizi and Rinvoq, Johnson & Johnson’s JNJ Tremfya and Stelara and Takeda’s Entyvio. Meanwhile, Olumiant, a JAK inhibitor, faces competition from other JAK inhibitors and biologics across its approved indications.
LLY’s Stock Price, Valuation and Estimates
Lilly’s stock has risen 4.5% so far this year compared with the industry’s increase of 10.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 26.18 forward earnings, higher than 18.02 for the industry. However, the stock is trading below its 5-year mean of 34.56.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 has risen from $35.38 to $35.93 per share over the past 60 days, while that for 2027 has risen from $44.93 to $45.93 per share over the same timeframe.
Image Source: Zacks Investment Research
Lilly has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Eli Lilly's Immunology Push Builds New Growth Engines Beyond GLP-1s

When considering dividend-paying stocks, those with a history of increasing payouts are prime candidates, reflecting their commitment to increasingly rewarding shareholders.
And when it comes to a consistent history of increased payouts, look no further than the Dividend Aristocrats. Several members of the club, including Johnson & Johnson JNJ, Coca-Cola KO, and Exxon Mobil XOM, are trading near all-time highs, reflecting bullish momentum driven by strong results or favorable operating conditions.
Below is a chart illustrating the YTD performance of each.
Johnson & Johnson Lifts Outlook
Johnson & Johnson’s biggest strength is its diversified business model, with more than 275 subsidiaries that provide a strong shield against economic fluctuations.
Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance in its latest quarterly release, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.
JNJ is not only a Dividend Aristocrat but also a Dividend King, a title held by companies with at least 50 years of consecutive annual dividend increases, owing to its ability to consistently reward shareholders throughout its long-standing history. Shares yield 2.0% annually, nearly double the current yield of the S&P 500.
JNJ is an extremely defensive stock given its ability to generate sales no matter the current backdrop, making it a top-tier option for those seeking a layer of defense paired with predictable dividend payouts. It has also been an excellent earnings performer, posting a double-beat relative to our consensus expectations in nine consecutive quarters.
Coca-Cola Capitalizes on Shifting Consumer Preferences
Coca-Cola’s brand equity, marketing, research, and innovation support a market share of more than 40% in the non-alcoholic beverage industry, with a product portfolio across a broad range of consumer needs and drinking occasions.
Coca-Cola’s latest results reflected nice strength, with Q2 sales climbing 7% YoY to $13.4 billion and EPS jumping 11% to $0.97. Importantly, the company has capitalized well on consumers’ shift and wants toward less-sugary options, reflected in 16% YoY volume growth in Coca-Cola Zero Sugar in the above-mentioned period.
Like JNJ, Coca-Cola is also a Dividend King, known for its consistent, increasing dividend payouts throughout time. Shares currently yield a solid 2.4% annually, with it also sporting a 5% five-year annualized dividend growth rate.
The earnings growth outlook for KO remains solid, with Zacks Consensus estimates suggesting 9.7% earnings growth in 2026 and another 7% in FY27. The growth here is quite strong given its overall mature nature, showcasing its ability to generate higher profits on the back of capitalizing on shifting preferences.
ExxonMobil Benefits Greatly From Higher Oil
ExxonMobil shares have delivered a strong performance in 2026 on the back of higher oil prices stemming from geopolitical concerns. Higher oil prices boost cash generation, which is why it remains a favorite among many income-focused investors.
Free cash flow of $17.5 billion in its latest quarter grew by a triple-digit 600% YoY, reflecting the highly favorable operating environment it’s been sitting in for the bulk of 2026. Shares currently yield 2.5% annually, with XOM carrying a 3.9% five-year annualized dividend growth rate.
That said, oil prices are undoubtedly volatile as we’ve learned this decade, but improved operational efficiencies mean it stays heavily cash-generative even in lower-price environments. Shares currently yield 2.5% annually, and XOM also provides strong shareholder returns through share buybacks.
Bottom Line
Consistently growing dividend payouts reflect rock-solid business fundamentals, with companies like Johnson & Johnson JNJ, Coca-Cola KO, and ExxonMobil XOM all showing their ability to return value to shareholders across different economic environments. Their strong cash-generating abilities also provide a higher level of defense during wider market volatility, offering another advantage for investors seeking a level of stability whenever sentiment shifts.
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3 Top Dividend Aristocrats To Own Near All-Time Highs

Key Points
To brace against market pullbacks, add some defensive stocks or funds to your mix.
Defensive industries include healthcare, utilities, and consumer staples.
Dividend payers can be great to hold in market downturns, too.
Is a stock market crash imminent? Well, no one knows for sure, but roughly 38% of investors surveyed by the American Association of Individual Investors reported expecting the stock market to decline over the coming six months (as of early September). Another worrisome sign is the S&P 500's historically high valuation. The cyclically adjusted price-to-earnings (CAPE) ratio was recently at 41.4, far higher than its long-term average of 17.4 and close to an all-time high of 44 reached in 1999 before the dot-com bubble turned into a crash.
It's generally not smart to jump out of the market fearing a crash -- because that's market timing -- and your timing may well be off. Instead, to calm your jitters, you might just invest in some exchange-traded funds (ETFs) that are built to withstand bear markets better than average investments.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A market crash or correction will happen one of these days. Here are some ETFs to consider, to brace against that. Each is focused on a "defensive" part of the economy -- on businesses that consumers will generally keep buying from, no matter how the economy is doing.
Vanguard Health Care Index Fund ETF
The Vanguard Health Care Index Fund ETF (NYSEMKT: VHT) is a prime example. In a recession, people will still need healthcare -- they will still buy their medications (to the degree that they're able to) and will still visit doctors. This fund recently held 417 stocks, with top holdings including Eli Lilly, Johnson & Johnson, and UnitedHealth Group. Its annual fee is just 0.09%, costing you $9 annually for every $10,000 you have invested in the fund, and its dividend yield was recently 1.5%.
State Street Utilities Select Sector SPDR ETF
The State Street Utilities Select Sector SPDR ETF (NYSEMKT: XLU) also has a low annual fee -- just 0.08% -- and its dividend yield was recently 2.8%. It's focused on utility-related companies, such as NextEra Energy, Southern Co., and Duke Energy, and it recently held about 31 of them. When the economy flags, people and businesses will still need to keep the lights on.
Vanguard Consumer Staples Index Fund ETF Shares
The Vanguard Consumer Staples Index Fund ETF Shares (NYSEMKT: VDC) specializes in consumer staples companies, recently holding 103 of them, such as Walmart, Procter & Gamble, and Coca-Cola. Its annual fee is 0.09%, and its recent dividend yield 2.1%. Clearly, no matter whether the economy is up or down, gobs of people will want to keep buying shampoo, soda, and items from Walmart.
Schwab U.S. REIT ETF
The Schwab U.S. REIT ETF (NYSEMKT: SCHH) is another defensive ETF, in that it holds many real estate investment trusts (REITs) -- companies that buy properties and lease them out. These are typically multiyear leases, if not multidecade, so that income is likely to keep rolling to the REITS. The ETF's annual fee is just 0.07%, and its recent dividend yield 2.8%. Its recent 117 holdings included Prologis, American Tower, and Realty Income.
Schwab U.S. Dividend Equity ETF
A solid dividend-focused ETF such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is also worth considering. (There are other good dividend ETFs, too, of course.) Why? Because dividend-paying companies tend to be established and profitable, with relatively dependable income. So they're more solid than the average stock. This ETF has an ultra-low annual fee of 0.06% and a recent dividend yield of 3%. Its top holdings (out of 98) recently included Merck, Chevron, and Verizon Communications.
Dividend income is particularly nice during recessions because while some stocks may be stagnating, healthy dividend payers will keep delivering cash to shareholders.
Whether the stock market pulls back this year, next year, or the year after, these ETFs will likely keep growing -- and delivering a little income regularly, too. Take a closer look at any of these funds that intrigue you.
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Selena Maranjian has positions in American Tower, NextEra Energy, Procter & Gamble, Realty Income, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends American Tower, Chevron, Eli Lilly, Merck, NextEra Energy, Prologis, Realty Income, and Walmart. The Motley Fool recommends Duke Energy, Johnson & Johnson, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.

These 5 ETFs Are Built for Bear Markets. History Says Now Is a Fantastic Time to Buy.

Key Points
These two companies have a long history of raising their dividend payments.
Dividend stocks offer you passive income in any market environment.
The S&P 500 has advanced for the past three calendar years and continues to march higher in 2026, even reaching record levels. But this isn't without interruption, particularly in recent months. Investors have worried about the ongoing turmoil in Iran, higher oil prices, rising inflation in the U.S., and growing levels of spending in the artificial intelligence (AI) space. These concerns have weighed on the S&P 500 from time to time -- and could even potentially lead to longer-lasting declines.
So, what's an investor to do in such a situation? It's the perfect time to load up on dividend stocks, or companies that pay shareholders just for owning the stock. A dividend stock will offer you recurrent income regardless of the market's performance. This is great during any market environment, but it can be a real portfolio-saver during times of trouble. That's because these payments may at least partially compensate for weakness in some of your other investments. Even better, certain dividend players operate in areas -- such as healthcare -- that generate steady revenue even when times are tough.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Which dividend stocks to choose? The perfect place to start is with the list of Dividend Kings, companies that have lifted their dividend payments for at least the past 50 consecutive years. They are committed to dividend growth and have demonstrated that they have the resources to keep these payments going. With this in mind, let's check out two dividend stocks built to hold up when markets don't.
1. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a name you might know well, particularly for certain consumer health products. The company actually exited that business a couple of years ago and shifted the focus to its pharmaceutical and medtech units. This move, putting all resources into the highest-potential areas, proved to be a wise one as we can see through recent earnings reports.
J&J now has 28 products and platforms that bring in more than $1 billion in annual revenue. Its innovative medicines (pharma) business had eight brands growing in the double digits in the recent quarter, and J&J is on track toward its goal of becoming the No. 1 oncology company by 2030. The healthcare giant is also progressing toward another important goal: more than $100 billion in revenue this year. This would be the highest revenue level ever for J&J.
As for dividends, J&J pays $5.36 per share, representing a dividend yield of 1.9%. So, an investment in J&J brings you a winning healthcare business along with passive income in the form of a dividend that's been growing over time.
2. AbbVie
AbbVie (NYSE: ABBV) is the company behind the world's first $20 billion drug, immunology blockbuster, Humira. That top-selling drug has since lost exclusivity, resulting in declines in sales, but AbbVie was prepared with newer immunology products, Skyrizi and Rinvoq, and these products are producing impressive results. In the recent quarter, Skyrizi and Rinvoq each delivered revenue growth of about 24% to more than $5 billion and $2 billion, respectively.
The company also has a leading aesthetics portfolio, with anti-wrinkle treatment Botox and filler Juvederm, as well as neuroscience and oncology portfolios. In the latest quarter, several of the company's neuroscience drugs delivered double-digit growth, including bipolar disorder treatment, Vraylar. That product generated more than $1 billion in revenue.
And total revenue continues to climb, even with the loss of Humira exclusivity, showing the strength of AbbVie's portfolio of commercialized drugs. In the quarter, worldwide revenue advanced 10% to more than $16 billion.
Like J&J, AbbVie has a long history of rewarding shareholders with dividends and lifting these payments year after year. This has brought the payment to $6.92, for a dividend yield of 2.7%, and makes AbbVie a stock built to hold up even when markets don't.
Should you buy stock in Johnson & Johnson right now?
Before you buy stock in Johnson & Johnson, consider this:
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Dividend Stocks Built to Hold Up When Markets Don't

Key Points
Warren Buffett guided the Berkshire Hathaway holding company to market-beating returns for 60 years.
He regularly said that everyday investors could do well by purchasing an exchange-traded fund that tracks a diversified index like the S&P 500.
In February 2014, Buffett specifically recommended the Vanguard S&P 500 ETF for its low fees and its ability to help young investors secure their financial future.
Warren Buffett is one of the world's most iconic investors. He served as CEO of the Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) holding company from 1965 to 2025, turning it into a $1 trillion conglomerate with numerous subsidiaries, a stock portfolio worth over $350 billion, and another $365 billion in cash.
Berkshire stock returned 19.7% annually during Buffett's 60-year tenure, so an investment of $500 in 1965 would have grown to a whopping $24 million by the end of 2025. But he was a seasoned professional, so he always knew the average investor would struggle to replicate his performance. That's why he consistently advocated exchange-traded funds (ETFs) that track a diversified index, like the S&P 500.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is one that Buffett specifically recommended in 2014 for its ultra-low fees. Here's how it could help young investors in their 20s build a financially secure future.
America's best stocks from 11 economic sectors
The S&P 500 is the most widely followed U.S. stock market index for a couple of reasons. First, it's made up of 500 companies from 11 different sectors of the economy, so it's highly diversified. Second, it has very strict entry criteria: its members must maintain a market capitalization of at least $22.7 billion and be profitable. But even after those boxes are ticked, a special committee ultimately decides which companies make the cut.
The S&P is weighted by market capitalization, so the largest companies in the index have a much higher representation than the smallest. Therefore, despite its diversified composition, the information technology sector has a massive weighting of 36.6% because it's home to five companies worth $1 trillion or more (Nvidia, Apple, Microsoft, Broadcom, and Micron Technology).
Below are the 11 sectors that make up the Vanguard S&P 500 ETF, along with their weightings and the three largest companies in each.
S&P 500 Sector
Sector Weighting
Largest Companies
Information technology
36.6%
Nvidia, Apple, Microsoft
Financials
12.5%
Berkshire Hathaway, JPMorgan Chase, Visa
Communication services
9.9%
Alphabet, Meta Platforms, Netflix
Consumer discretionary
9.4%
Amazon, Tesla, Home Depot
Healthcare
9.1%
Eli Lilly, Johnson & Johnson, AbbVie
Industrials
8.7%
Caterpillar, GE Aerospace, RTX Corporation
Consumer staples
4.7%
Walmart, Costco, Coca-Cola
Energy
3.4%
ExxonMobil, Chevron, ConocoPhillips
Utilities
2.1%
NextEra Energy, Constellation Energy, Southern Co
Real estate
1.9%
Welltower, Prologis, Equinix
Materials
1.8%
Linde, Newmont, Freeport-McMoRan
Data source: Vanguard. Sector weightings are accurate as of July 31, 2026, and are subject to change.
The technology sector is exerting a particularly strong influence on the performance of the S&P 500 right now, thanks to the artificial intelligence (AI) revolution, which began to gain momentum when OpenAI's ChatGPT application surpassed 100 million users in early 2023. In fact, if we exclude the sector's contribution over the last three-and-a-half years, the S&P 500's return drops from 101% to just 63%.
Simply put, the Vanguard ETF gives investors exposure to the fastest-growing area of the market in a diversified manner, which is why it's a popular long-term investment option.
Taking Buffett's advice could yield spectacular results
The S&P 500 has returned 10.7% since its inception in 1957 (assuming all dividends were reinvested). But it has delivered an accelerated return of 13.9% since Buffett recommended the Vanguard S&P 500 ETF in 2014, primarily thanks to the tech sector.
Past performance isn't always a reliable indicator of future results, but a 25-year-old investor could build a very nice retirement fund using the Vanguard ETF if its historical returns persist. Below are two potential outcomes.
Starting Balance at Age 25
Compound Annual Return
Balance at Age 65
$20,000
10.7%
$1,166,634
$20,000
13.9%
$3,647,362
Those results don't include costs, but with an expense ratio of just 0.03%, investors would incur an annual fee of just $3 for every $10,000 they have parked in the Vanguard ETF.
To conclude, investors probably shouldn't sell their entire position at retirement age, because compounding yields the greatest benefits over time. With a large enough balance after 40 years, the subsequent annual returns could provide a significant income to fund life after employment.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
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*Stock Advisor returns as of September 8, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Caterpillar, Chevron, Constellation Energy, Costco Wholesale, Eli Lilly, Equinix, GE Aerospace, Home Depot, JPMorgan Chase, Meta Platforms, Micron Technology, Microsoft, Netflix, NextEra Energy, Nvidia, Prologis, RTX, Tesla, Vanguard S&P 500 ETF, Visa, and Walmart. The Motley Fool recommends ConocoPhillips, Johnson & Johnson, and Linde. The Motley Fool has a disclosure policy.

If I Were in My 20s, I'd Buy This Vanguard ETF Warren Buffett Recommended and Hold It Forever

Johnson & Johnson (JNJ) closed the most recent trading day at $269.12, moving -2.22% from the previous trading session. This change lagged the S&P 500's 0.58% loss on the day. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.32%.
Prior to today's trading, shares of the world's biggest maker of health care products had gained 5.13% outpaced the Medical sector's gain of 2.73% and the S&P 500's loss of 0.36%.
Market participants will be closely following the financial results of Johnson & Johnson in its upcoming release. The company plans to announce its earnings on October 13, 2026. The company is forecasted to report an EPS of $2.95, showcasing a 5.36% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $25.36 billion, indicating a 5.71% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $11.59 per share and a revenue of $101.09 billion, demonstrating changes of +7.41% and +7.32%, respectively, from the preceding year.
Any recent changes to analyst estimates for Johnson & Johnson should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Johnson & Johnson is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Johnson & Johnson is presently being traded at a Forward P/E ratio of 23.75. This valuation marks a premium compared to its industry average Forward P/E of 17.92.
Meanwhile, JNJ's PEG ratio is currently 2.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).

Johnson & Johnson (JNJ) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Eli Lilly LLY and Johnson & Johnson JNJ are two leading U.S.-based healthcare companies with strong positions across the pharmaceutical and biotech industries.
Both companies have significant exposure to oncology, immunology and neuroscience. J&J’s business is more diversified, with treatments targeting cardiovascular and metabolic conditions, pulmonary hypertension and infectious diseases, along with a sizable medical devices operation. Lilly, meanwhile, has built a leading position in cardiometabolic care, fueled by its GLP-1 portfolio, with Mounjaro and Zepbound serving as major growth engines.
Both companies continue to deliver strong revenue and earnings growth and have promising long-term prospects. However, which stock presents the more attractive investment opportunity at current levels? An assessment of their fundamentals, growth potential, valuations and key risks can help determine which one offers the better risk-reward profile.
The Case for Lilly Stock
Lilly has seen extraordinary momentum in its cardiometabolic franchise. Its blockbuster drugs, Mounjaro for type II diabetes and Zepbound for obesity, have become some of the fastest-growing medicines in pharmaceutical history, gaining from enormous global demand for GLP-1 therapies. These therapies account for around 65% of the company’s total revenues and have become key top-line drivers for Lilly, with demand rising rapidly. In the first half of 2026, the drugs generated combined sales of $27.6 billion.
Lilly’s newly launched once-daily oral GLP-1 pill, Foundayo (orforglipron), for treating obesity, can prove to be a commercial game-changer for Lilly. Oral pills will be a more convenient alternative to the currently available once-weekly injectable obesity treatments like Zepbound and rival Novo Nordisk’s NVO Wegovy. Foundayo's launch uptake has been encouraging as Lilly expands physician engagement and direct-to-consumer promotion in the United States.
To maintain leadership in the GLP-1 market, Lilly is developing several next-generation, more powerful and more convenient GLP-1–based treatments, including oral options and multi-acting candidates. Retatrutide is one of Lilly’s most important late-stage pipeline candidates, targeting GLP-1, GIP and glucagon pathways and potentially delivering greater weight loss and broader metabolic benefits than current therapies. With late-stage studies spanning obesity, type II diabetes, obstructive sleep apnea (OSA) and other indications, Lilly plans to seek FDA approval in the first quarter of 2027, potentially creating another multibillion-dollar growth driver.
Lilly’s growth story is increasingly diversified beyond its GLP-1 franchise, with newer therapies such as Omvoh, Jaypirca, Ebglyss, Kisunla and Inluriyo gaining traction across multiple therapeutic areas. These products are becoming meaningful growth contributors.
The company has also embarked on an aggressive M&A spree in the past couple of years, acquiring biotech companies across oncology, neuroscience, cardiovascular disease, gene editing, inflammation, cell therapy and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies. The company has announced around 10 small biotech M&A deals this year.
Lilly has its share of problems. Prices of most of Lilly’s products are declining in the United States. Price is expected to continue to be a drag on top-line growth in the low- to mid-teens percentage in 2026. Rising competition in the GLP-1 diabetes/obesity market is a key headwind. Also, sales of late-life cycle products like Trulicity, Taltz and Verzenio are expected to be flat to down in 2026.
The Case for J&J Stock
J&J’s biggest strength is its diversified business model, operating through pharmaceuticals and medical devices divisions, which reduces dependence on any single product or market. It has more than 275 subsidiaries and boasts 28 platforms or products with more than $1 billion in annual sales, with the aim of adding even more. Its diversification helps it to withstand economic cycles more effectively. It also boasts strong cash flows and has increased its dividends for 64 consecutive years. J&J believes the depth of its portfolio and pipeline is stronger than ever.
J&J’s Innovative Medicines segment is the company’s primary growth engine. Innovative Medicine segment sales rose 6.2% organically in the first half of 2026, despite the loss of exclusivity (LOE) of the blockbuster drug, Stelara. Growth was driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.
J&J’s MedTech growth slowed in the second quarter, reflecting weakness in Cardiovascular, particularly Abiomed due to slow procedure volumes, and continued China VBP headwinds.
J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze are contributing significantly to top-line growth, driven by market share gains. Its recent pipeline launches, including Inlexzo, Imaavy and Icotyde, are gaining traction and could become significant growth drivers in future quarters.
J&J believes 10 of its new products in the Innovative Medicine segment have the potential to reach peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, Caplyta, Inlexzo, Rybrevant, plus Lazcluze and Icotyde.
J&J expects 2026 to be a year of accelerated growth. The company is confident that it can achieve its target of generating more than $100 billion in revenues in 2026 with $49.4 billion already generated in the first half. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. J&J believes that it is already achieving this growth. Though J&J’s total revenues are currently rising in a mid-single-digit range, excluding Stelara, J&J’s top line grew in a double-digit range in both the first and second quarters of 2026.
J&J also expects its MedTech business to do better in the second half of the year compared with the first, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular. While the Abiomed softness creates a new overhang, it accounts for less than 2% of sales, and J&J has other top-line drivers to compensate.
However, J&J faces its share of headwinds, including the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech. The legal battle surrounding its talc lawsuits is another headwind. Though the issue is close to resolution, it has not yet been fully resolved.
How Do Estimates Compare for LLY & JNJ?
The Zacks Consensus Estimate for LLY’s 2026 sales and EPS implies a year-over-year increase of 35.4% and 48.4%, respectively. The Zacks Consensus Estimate for 2026 has risen from $35.56 to $35.93 per share over the past 60 days, while that for 2027 has risen from $44.58 to $45.93 per share over the same timeframe.
LLY Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for J&J’s 2026 sales and EPS implies a year-over-year increase of 7.3% and 7.4%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 to $11.59 over the past 60 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.
JNJ Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of LLY & JNJ
So far this year, LLY’s stock has risen 6.9% and J&J’s stock has surged 33%. The industry has jumped 14.5% in the same time frame.
Image Source: Zacks Investment Research
J&J looks more attractive than Lilly from a valuation standpoint. Going by the price/earnings ratio, Lilly’s shares currently trade at 26.87 forward earnings, significantly higher than 18.71 for the industry. However, LLY’s stock is trading below its 5-year mean of 34.57. J&J’s shares currently trade at 22.16 forward earnings, higher than the industry as well as the stock’s 5-year mean of 15.65.
Image Source: Zacks Investment Research
J&J’s dividend yield is around 2%, while Lilly’s is around 0.6%.
Image Source: Zacks Investment Research
LLY or JNJ: Which is a Better Pick?
J&J enjoys a diversified revenue base, a large cash-generating business and a long history of returning capital to shareholders. It is witnessing steady sales and earnings growth, continued strength in its Innovative Medicine business, and improving fundamentals and outlook. Despite several headwinds, J&J looks quite confident that it will be able to navigate these challenges.
Lilly remains one of the most compelling growth stories in the pharmaceutical industry, supported by its significant price appreciation, dominant position in the rapidly expanding obesity and diabetes markets, a diversified late-stage pipeline and strong financial performance.
Choosing between Eli Lilly and J&J is probably the most difficult choice to make among large drug stocks. Both have seen steady growth in sales and earnings, rising stock prices and analyst estimates and have an optimistic outlook for future growth. Additionally, continued pipeline advancements, favorable regulatory developments, and strategic M&A activity have strengthened investor sentiment for both stocks.
Both stocks have a Zacks Rank #3 (Hold). However, we are selecting Lilly over J&J as the stock offers a substantially stronger long-term earnings-growth opportunity. While JNJ’s share price movement and valuation are slightly better, LLY’s long-term growth prospects remain among the strongest in the healthcare sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lilly vs. J&J: Betting on Breakout Growth or Built-In Stability?

Key Points
The State Street Health Care Select Sector SPDR ETF could be a rising rates winner.
It easily outpaced the broader market when the Fed hiked rates in 2022.
The reasons why the Fed may be forced to tighten could bode well for this ETF.
The next Federal Reserve meeting is on Wednesday, Sept. 16, and it could be a doozy because the central bank could deliver its first interest rate hike in more than three years. Many professional investors believe that will happen as Fed funds futures implied a 59.4% chance of a rate increase as of Sept. 4.
Inflation tells the tale of why a hawkish stance is very much on the table for the Fed. While headline inflation is expected to cool this month, a deeper dive reveals that Core Personal Consumption Expenditures (PCE) are climbing. That gauge, which is a preferred tool of the Federal Open Market Committee (FOMC), strips out volatile energy and food prices, implying that consumers are paying higher prices for an array of goods beyond gas and groceries.
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So it's not a stretch to say that the Fed's hand may be forced and that a rate hike is imminent. Investors may find some rate-hike protection in healthcare stocks and exchange-traded funds, such as the State Street Health Care Select Sector SPDR ETF (NYSEMKT: XLV).
XLV's relevancy then and now
Time will tell whether the Fed merely nudges rates higher once or twice, or embarks on a rate-tightening regime à la 2022-23. Ideally, it's not the latter, but if it is, this healthcare ETF has a favorable recent history. When the Fed began raising interest rates in 2022 to curb inflation, the S&P 500 tumbled 18.6%, while this healthcare ETF lost just 1.1%.
The $45 billion healthcare ETF's history against the backdrop of Fed tightening is relevant here and now because of some wonky correlation stuff. Put simply, the correlation between equities and 10-year Treasury yields is now negative, indicating that Mr. Market is walking on sticky inflation eggshells.
Defensive sectors, including healthcare, have a history of proving durable or less bad when the aforementioned "correlation conundrum" appears. One reason is that those groups are chock-full of dividend-paying stocks, which can serve as a buffer when broader benchmarks slip. For its part, the SPDR ETF carries a 30-day SEC yield of 1.47%.
The ETF is home to four Dividend Kings -- those companies that have raised payouts in 50 consecutive years -- three of which are among the fund's top 10 holdings. That trio is led by Johnson & Johnson, which is the healthcare ETF's second-largest component.
Inflation backs the case for this ETF
Some certainties make the SPDR ETF a smart idea this month. First, new Federal Reserve Chair Kevin Warsh is eager to ward off inflation. Second, larger, higher-quality healthcare stocks tend to be somewhat insensitive to rate hikes while still generating solid earnings when Fed hawkishness cools economic growth.
Another certainty is that Fed rate actions, be they cuts or increases, take time to work their way through the economy. That is to say, a rate hike could arrive this month, but its inflation-cooling effects may not be felt for months. If that proves to be the case, the healthcare sector's reputation for growing earnings in inflationary environments becomes all the more coveted, underscoring why some experts call the group the "antidote" for inflationary times.
So the State Street Health Care Select Sector SPDR ETF isn't a cure for undesirable monetary policy, but it is a smart investment when rates rise.
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Todd Shriber has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.