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 appears to be a high-quality but not cheap defensive asset: operating profitability and margins remain high, but the market has already priced that in. A P/E of 30.88, P/S of 6.13, P/B of 6.79, and P/FCF of 34.15 are noticeably above the industry median, indicating a quality premium and reducing the potential for further re-rating. At the same time, the trend in the multiples is not deteriorating dramatically overall: P/E and P/FCF have fluctuated but remain at elevated levels, while P/S and P/B stay consistently high. The company’s strength lies in its resilient margins: net margin of 21.48%, operating margin of 25.73%, and ROE of 25.74% are above industry benchmarks, confirming strong business efficiency. ROA of 10.60% and ROI of 17.68% also look solid and point to good capital and asset quality. Revenue, EBITDA, gross profit, and operating profit in absolute terms remain large and are generally growing, supporting fundamental resilience. However, by year it is noticeable that net income, operating profit, and margins were higher in earlier periods, and current levels look slightly weaker than peak values, meaning the growth momentum is not accelerating. Liquidity is a weak point: a quick ratio of 0.77 and a current ratio of 1.09 are below industry medians, so the balance sheet does not look especially comfortable in the short term. Debt burden is moderate: a debt/equity ratio of 0.46 and long-term debt of about $37.3 billion look manageable, with no signs of excessive leverage. Equity and assets continue to grow, supporting financial stability, but this does not fully offset the high valuation multiples. Dividend yield has declined compared with previous periods, so the dividend argument is weaker now than before. Overall, JNJ’s fundamentals are strong and defensive, but the current price already reflects much of that quality, so the potential for target price revision is limited and should be moderately positive rather than aggressive.

Johnson & Johnson

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

JNJ remains a high-quality defensive business with strong profitability and resilient earnings, but it trades at a significant premium to the sector with limited upside.

(RTTNews) - Johnson & Johnson (JNJ) announced new data from Cohort 5 of the Phase 1b/2 OrigAMI-4 study showing deep and durable responses with first-line subcutaneous amivantamab and hyaluronidase-lpuj (RYBREVANT FASPRO) combined with a PD-1 inhibitor and fixed-duration carboplatin chemotherapy in patients with recurrent or metastatic head and neck squamous cell carcinoma (HNSCC).
Among patients with HNSCC excluding human papillomavirus (HPV)-associated oropharyngeal squamous cell carcinoma (OPSCC), the regimen achieved a confirmed overall response rate (ORR) of 77%, including complete responses in 14% of patients. Tumor shrinkage was observed in all evaluable patients, while nearly two-thirds of responses remained ongoing at a median follow-up of 10.6 months.
The company said responses were both deep and durable, with 65% of responses still ongoing at the clinical data cutoff, underscoring the potential of the investigational regimen in the first-line treatment setting.
The findings support continued evaluation of the RYBREVANT FASPRO-based regimen in the ongoing pivotal Phase 3 OrigAMI-5 trial, which is assessing the treatment as a first-line option for patients with recurrent or metastatic HNSCC.
Johnson & Johnson noted that the results also reinforce the therapeutic rationale for dual targeting of EGFR and MET, two pathways implicated in tumor growth and treatment resistance in an estimated 80% to 90% of HNSCC cases. The company believes simultaneous inhibition of these drivers may help improve outcomes in a disease with significant unmet medical need.
For More Such Health News, visit rttnews.com.

J&J's RYBREVANT FASPRO Regimen Delivers 77% Response Rate In First-Line HNSCC Study

Key Points
A few warning signs are flashing in the market these days.
Several companies have historically held up well during market selloffs.
They're ideal stocks to buy before the next downturn.
The stock market is starting to look a little less safe. The CAPE ratio recently hit its second-highest reading on record, suggesting the stock market is quite overvalued. Add in continued high inflation, the highest rate for the 10-year Treasury in nearly a quarter century, and a new Fed rate hike cycle, and downside risks seem to be growing by the day.
While that sounds bleak, several stocks have a history of holding up during market turbulence. Six that stand out for their resiliency are Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), Coca-Cola (NYSE: KO), Duke Energy (NYSE: DUK), Johnson & Johnson (NYSE: JNJ), Realty Income (NYSE: O), and WM (NYSE: WM). We saw this during the last bear market in 2022 when they all outperformed the S&P 500, with several ending the year in the green:
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Here's a quick look at why these six stocks have historically held up during market downdrafts.
Berkshire Hathaway
Berkshire Hathaway owns a diversified portfolio of operating companies, including GEICO, BNSF, and MidAmerican Energy. The company's insurance, financial services, transportation, energy, manufacturing, service, and retailing operations generate relatively stable earnings, which it retains. Berkshire uses its retained earnings to acquire additional operating companies and to invest in public equities, such as Coca-Cola. It currently has a massive cash balance ($365.5 billion at the end of June, nearly a third of its market cap). That large cash position provides ballast during market downturns, while enabling Berkshire to opportunistically repurchase shares, acquire additional operating companies, and buy more public equities.
Coca-Cola
Coca-Cola owns a portfolio of satisfying beverage brands, including Coke, Dasani, Powerade, and Gold Peak. Demand for its products tends to be durable and steadily rising, enabling it to generate resilient, growing cash flows. That has enabled Coca-Cola to increase its dividend for 64 straight years, qualifying it as a Dividend King (a company with 50 or more years of annual dividend increases). The company also has a fortress balance sheet, which helps it weather storms and make acquisitions when opportunities arise.
Duke Energy
Duke Energy is one of the country's largest regulated electric and natural gas utilities. It benefits from durable energy demand, while government regulators set its prices. That enables it to generate resilient earnings, which has allowed it to pay dividends to its shareholders for over 100 years (and increase its dividend for more than 20 straight years). Duke has ample financial capacity to expand its operations and is currently executing a $103 billion capital investment plan through 2030, which should support 5% to 7% annual earnings-per-share growth. The company's combination of durable cash flows and stable growth significantly reduces the volatility of its stock price.
Johnson & Johnson
Johnson & Johnson has one of the world's healthiest financial profiles. It's one of only two companies with a pristine AAA credit rating, giving it unparalleled financial flexibility and stability. Meanwhile, durable and growing demand for its innovative medicines and medical technologies has enabled the company to increase its dividend for 64 straight years. The company generates robust cash flows, allowing it to invest heavily in R&D. It also routinely makes strategic acquisitions to bolster its drug pipeline and medtech portfolio. These investments should support its continued growth.
Realty Income
Realty Income is one of the world's largest REITs. It owns a diversified portfolio of retail, industrial, gaming, data center, and other properties secured by long-term net leases with many of the world's leading companies (most of which operate in industries resilient to economic downturns). Net leases provide very stable cash flow because tenants pay all property operating expenses, including routine maintenance, real estate taxes, and building insurance. Realty Income also has a fortress financial profile. These resilient features are one reason why the REIT has outperformed the S&P 500 during 11 of its 13 corrections (10%+ market declines) since its public market listing in 1994. They also support its steadily rising dividend (over 30 straight years).
WM
WM is North America's leading environmental solutions provider. It generates very resilient recurring revenue because customers need their garbage and recyclables collected, medical waste handled, and their documents securely destroyed. That provides it with stable cash flow to pay a growing dividend (for 23 consecutive years), repurchase shares, maintain a strong balance sheet, and invest in its growth, including through acquisitions. WM's durable features have made its stock about half as volatile as the S&P 500, while still generating above-average total returns.
Preparing for troubling times in advance
The stock market seems to be flashing lots of warning signs these days that we could be heading toward a more challenging period. The market has experienced many sell-offs throughout its history and will likely endure many more during our lifetimes. Companies like Berkshire Hathaway, Coca-Cola, Duke Energy, Johnson & Johnson, Realty Income, and WM have historically weathered these market storms better than most due to their more resilient cash flows and strong financial profiles. That makes them ideal stocks to consider buying before the next storm, as they can help lower your portfolio's volatility, protecting your wealth and allowing you to sleep a little more soundly when the market starts getting dangerous.
Should you buy stock in Johnson & Johnson right now?
Before you buy stock in Johnson & Johnson, 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 Johnson & Johnson wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Matt DiLallo has positions in Berkshire Hathaway, Coca-Cola, Johnson & Johnson, Realty Income, and WM. The Motley Fool has positions in and recommends Berkshire Hathaway and Realty Income. The Motley Fool recommends Duke Energy, Johnson & Johnson, and WM. The Motley Fool has a disclosure policy.

When the Stock Market Gets Dangerous, These 6 Investments Have a History of Holding Up

Key Points
Pharmaceutical outfit Johnson & Johnson recently reported solid overall Q3 numbers with one alarming red flag.
The market chose to see the glass as half empty rather than half full, sending shares lower.
The longer-term bullish thesis here remains compelling, making the stock’s recent stumble an attractive buying opportunity.
Although Johnson & Johnson's (NYSE: JNJ) third-quarter revenue and earnings both topped analyst estimates and the company even raised its full-year sales guidance, investors panicked over disappointing sales of medical devices. All told, the stock fell nearly 6% on Tuesday following that morning's earnings release, adding to weakness that's been in place since early last month.
Wise investors, however, will view this pullback from J&J shares as an opportunity rather than an omen. Although the company clearly has a couple of matters to iron out, the proverbial glass is more than half full.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
The quarter's big stumbling block
Drugmaker Johnson & Johnson turned $25.9 billion worth of revenue into an adjusted per-share profit of $2.59 during the three-month stretch ending in September, up 6% and down 7.5% (respectively) year over year, but topping most analysts' widely varied expectations for both measures. The company also upped its sales and earnings guidance for the entirety of fiscal 2026. Its previously projected operational sales growth of between 6.2% and 6.8% has now been raised to a new range of 6.4% to 6.8%, while July's adjusted earnings guidance growth of between 1.6% and 2.4% has been revised to a new range of 2.4% to 3.3%.
The stumbling block? Sales of medical technology equipment. This arm's revenue increased only 2.5% to $8.6 billion, falling short of analysts' consensus estimates of just over $8.7 billion. Investors just flinched.
Granted, CFO Joe Wolk may have done more harm than good by conceding during Tuesday's third-quarter earnings conference call that "MedTech performance needs to improve," then describing this division's quarterly results as "disappointing."
Even so, investors appeared prepared to dole out a bearish response regardless of what management said about the company's quarterly results.
Now, take a step back and look at the bigger picture.
The bullish thesis lost in all the noise
As was noted, the market's immediate response to J&J's third-quarter report makes enough sense on the surface. Its medical equipment arm's results are a legitimate concern, and the company made it even more of a red flag by floating the idea of a spinoff of its orthopedics equipment business, DePuy Synthes, sometime in 2027, a tacit admission that management doesn't believe this business is worth trying to rejuvenate.
Just bear in mind that the entirety of Johnson & Johnson's medical tech division still only accounts for about one-third of the company's total sales, and less than 20% of its adjusted net income. Moreover, J&J's orthopedics business alone accounts for only about one-fourth of its medtech business.
In other words, its DePuy Synthes brand isn't quite the liability it's being seen as. Johnson & Johnson will be fine with or without it, as is the case with most pieces of its medical technology portfolio.
Perhaps the key bullish argument obscured by the noisy aftermath of the pharmaceutical giant's third-quarter earnings release, however, is that the company's still on pace to become the cancer treatment juggernaut it's been planning to become since 2024. Still doing work that began that same year, J&J maintains that it will be doing at least $50 billion worth of oncology drug business by 2030. That would not only make treating cancer the company's single-biggest business, but also make Johnson & Johnson one of the pharmaceutical industry's biggest sellers of cancer drugs.
The irony? Several of the key oncology drugs the pharma outfit expects to lead this charge are already showing clear signs of their required growth. Led by the 15.4% increase in sales of Darzalex and 62% and 77% year-over-year growth in sales of Rybrevant and Tecvayli (respectively), Johnson & Johnson's global oncology business grew more than 16% to $7.6 billion during Q3 alone. The company simply needs to continue winning approvals for its newer cancer drugs.
And it will. For instance, last quarter, the U.S. Food and Drug Administration granted a priority review of Rybrevant Faspro as a treatment for certain types of head and neck cancer, underscoring the need for more effective treatment options.
Just know what you're buying into
This doesn't necessarily make J&J shares easy to own in the meantime. Confidence in the company's future is shaky at best, creating investor indecision that in turn spurs unpredictable volatility for the stock.
There's one arguably overlooked detail to consider here, however, that makes this ticker much easier to stick with in the interim. That's its dividend. Although its forward-looking yield of 2% isn't exactly thrilling, it's based on an annualized dividend payment with a 64-year growth streak that isn't apt to end anytime soon. Indeed, Johnson & Johnson can comfortably continue paying it without undermining its growth or balance sheet. The per-share profit of $11.10 that analysts are anticipating for this year -- en route to $11.79 next year -- is more than enough to cover what will only be $5.32 worth of dividend payments declared and paid in 2026.
This might help: Despite a couple of concerning quarterly reports and the stock's subsequent weakness this year, analysts aren't deterred. Most of them still consider J&J a strong buy, with a consensus price target of $282.48, which is well above the ticker's current price. If nothing else, it's a healthy starting point.
Should you buy stock in Johnson & Johnson right now?
Before you buy stock in Johnson & Johnson, 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 Johnson & Johnson 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 $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*
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James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

Johnson & Johnson Just Raised Its Sales Outlook Again. Here's Why the Dividend King Is Still a Buy.

Healthcare giants UnitedHealth Group UNH) and Johnson & Johnson JNJ) reported Q3 results on Tuesday, with both raising their full-year earnings outlooks but delivering contrasting reports.
While UnitedHealth's stronger-than-expected results highlighted improving medical cost management and a potential earnings recovery, Johnson & Johnson's growth in pharmaceuticals was tempered by weakness in its medical technology business.
With both healthcare leaders offering attractive dividend income, let's examine which stock presents the better investment opportunity following Q3 earnings.
UnitedHealth's Q3 Earnings Signal a Recovery
UnitedHealth reported adjusted Q3 earnings of $4.69 per share, beating the Zacks Consensus Estimate of $4.12 by nearly 14% and jumping 60% from EPS of $2.92 a year ago. Revenue reached $112.69 billion, exceeding expectations by 1% despite dipping from $113.16 billion in the prior-year quarter.
Encouragingly, UnitedHealth's medical cost ratio improved to 88.4% from 89.9% a year earlier, reflecting stronger medical cost management and pricing discipline that helped drive its impressive earnings growth.
Management raised its full-year adjusted EPS outlook to at least $20.50, representing 25% year-over-year growth and reinforcing optimism about improving profitability. Most importantly, the updated EPS guidance came in above Wall Street’s forecast of $19.85 per share.
This comes despite ongoing Medicare Advantage reimbursement pressures and challenges within its Optum business, which provides pharmacy benefits, healthcare services, and technology solutions.
Image Source: Zacks Investment Research
Johnson & Johnson's Q3 Results Highlight Mixed Momentum
Johnson & Johnson posted adjusted Q3 earnings of $2.59 per share, topping the Zacks EPS Consensus of $2.53 by 2%. That said, earnings declined 7.5% YoY, while revenue increased 6% to $25.4 billion, but narrowly missed estimates.
The company's Innovative Medicine division remained a bright spot, with sales climbing 7.7%, supported by strong demand for key pharmaceutical products. However, J&J's MedTech division, which specializes in cardiovascular devices, orthopedic implants, surgical equipment, and vision care products, saw revenue increase just 2.5% to $8.64 billion, falling short of expectations.
Despite these challenges, J&J raised its 2026 adjusted EPS guidance to $11.05-$11.15, up from its prior outlook of $10.96-$11.11 and representing more than 2% annual growth. Additionally, J&J expects annual revenue to reach $101.2 billion, representing 7% YoY growth.
Still, the updated EPS outlook came in slightly below the Street’s current forecast of $11.16.
Image Source: Zacks Investment Research
Performance & Valuation Comparison
Johnson & Johnson has been the stronger performer in 2026, with shares up more than 20% year-to-date when including dividends compared with UnitedHealth's roughly 17% advance.
Over the last three years, JNJ’s total return of 70% has trailed the broader market but has significantly outpaced the Zacks Medical Sector’s 9% gain. Meanwhile, UNH is still down 25% in the last three years, amid elevated medical costs, regulatory and policy headwinds, margin compression, and concerns over future profitability.
Image Source: Zacks Investment Research
However, UnitedHealth offers a more appealing valuation, with UNH trading around 19X forward earnings, compared with JNJ's 23X. Both stocks trade at discounts to the Zacks Medical Sector’s 25X, but UNH certainly offers greater value, especially if its earnings recovery continues.
Image Source: Zacks Investment Research
Dividend Comparison
UnitedHealth currently pays a quarterly dividend of $2.32 per share, representing an annualized payout of $9.28 and a yield of approximately 2.45%.
Johnson & Johnson offers an annualized dividend of $5.36 per share, yielding roughly 2%. Notably, JNJ has increased its dividend for 64 consecutive years, making it a Dividend King and an attractive long-term income holding.
Although Johnson & Johnson has a more established dividend-growth history, UnitedHealth has increased its dividend for 16 consecutive years and offers the higher yield.
Image Source: Zacks Investment Research
Bottom Line: UNH Is the Better Buy After Q3 Earnings
UnitedHealth's stronger earnings momentum, improving medical cost management, more reasonable valuation, and slightly higher dividend yield make it the more compelling healthcare investment following Q3 earnings.
Keeping that in mind, UNH currently sports a Zacks Rank #2 (Buy), supported by a trend of positive earnings estimate revisions. In contrast, JNJ lands a Zacks Rank #4 (Sell) as earnings estimates have declined despite the company's solid long-term fundamentals.
Considering JNJ's impressive YTD gains and relatively premium valuation, this could be an ideal time for investors to take profits and consider UNH's improving outlook and rebound potential.
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UnitedHealth vs. Johnson & Johnson: Which Stock Is the Better Buy After Q3 Earnings?

The S&P 500 Index ($SPX) (SPY) closed down by -0.02% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.31%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) fell -0.32%.
Stock indexes settled lower on Tuesday, with the Nasdaq 100 falling to a 1.5-week low. Weakness in chipmakers weighed on the broader market Tuesday amid concerns that investment in artificial intelligence may be unsustainable due to safety concerns and signs of funding strain. Also, a selloff in South Korea’s Samsung Electronics and SK Hynix knocked South Korea’s Kospi Index down more than -5% on Tuesday to a 2.5-month low amid concerns over intensifying competition from China, adding additional pressure to chip stocks.
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However, stocks recovered from their worst levels on Tuesday as bond yields fell on dovish Fed comments that bolstered speculation the Fed won’t be forced to raise interest rates aggressively. Fed Governor Christopher Waller said the recent surge in long-term bond yields is helping to curb demand in interest-rate-sensitive sectors, such as housing and automobiles, doing some of the Fed's work to tighten monetary policy. Waller’s comments suggest he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee limited the decline in T-note yields when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy. The 10-year T-note yield fell -3 bp to 5.21%.
Tuesday’s US economic news was supportive for stocks after Sep existing home sales unexpectedly rose +1.5% m/m to 3.99 million, stronger than expectations of a decline to 3.95 million.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.”
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
The International Monetary Fund (IMF) raised its 2026 global GDP forecast to 3.1% from 3.0% in July and kept its 2026 global consumer price forecast unchanged from July at 4.7%.
Nov WTI crude oil prices (CLX26) rose slightly on Tuesday amid concerns about Middle East energy-supply disruptions. Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen in recent days, while Iran has ramped up attacks on shipping in the Strait of Hormuz.
Gains in crude were limited on Tuesday after Saudi Arabia said its Sep crude production rose by +2 million bpd (+40% m/m) to 8.732 million bpd, recovering from a 36-year low in August. Goldman Sachs estimates a $24-a-barrel risk premium in crude oil prices due to the Middle East conflict. However, if Europe releases half the diesel it has announced from reserves, fair value prices could fall by about $11 a barrel.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.55%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.10%. Japan's Nikkei-225 Stock Average fell to a 1.5-week low and closed down -1.82%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +5.5 ticks on Tuesday. The 10-year T-note yield fell -2.5 bp to 5.213%. Dec T-notes rose to a 1-week high on Tuesday, and the 10-year T-note yield fell to a 1-week low of 5.171%. Lower inflation expectations supported gains in T-notes on Tuesday after the 10-year breakeven inflation rate fell to a 1-week low of 2.336%. Dovish Fed comments also supported T-note prices on Tuesday when Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed’s work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said that after the Fed hikes rates one more time this year, he believes the Fed’s rate-hike cycle is done.
T-note gains were limited Tuesday after Chicago Fed President Austan Goolsbee said inflation remains too high. Also, Tuesday’s report showing Sep existing home sales unexpectedly increased weighed on T-notes.
European government bond yields were mixed on Tuesday. The 10-year German bund yield fell to a 1-week low of 3.426% and finished down -0.8 bp to 3.469%. The 10-year UK gilt yield rose +0.7 bp to 5.447%.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated for a second session on Tuesday, weighing on the overall market. Applied Materials (AMAT) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100 after failing to give a detailed outlook at an investor day conference. Also, Micron Technology (MU) and KLA Corp (KLAC) closed down more than -3%, and Lam Research (LRCX) closed down more than -2%. In addition, ASML Holding NV (ASML) and Western Digital (WDC) closed down more than -1%.
Pharmaceutical stocks sold off on Tuesday. Vertex Pharmaceuticals (VRTX) closed down more than -4%, and Merck & Co (MRK), Ionis Pharmaceuticals (IONS), Jazz Pharmaceuticals Plc (JAZZ), and Untragenyx Pharmaceutical (RARE) closed down more than -2%. Also, Gilead Sciences (GILD), Amgen (AMGN), Eli Lilly (LLY), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) closed down more than -1%.
Energy producers and service providers rallied on Tuesday as WTI crude prices rose. Valero Energy (VLO) closed up more than +4%, and Marathon Petroleum (MPC) and Phillips 66 (PSX) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Devon Energy (DVN) closed up more than +2%, and Chevron (CVX), Diamondback Energy (FANG), and ExxonMobil Holdings (XOM) closed up more than +1%.
Telecom operators moved higher on Tuesday. Charter Communications (CHTR) closed up more than +4%, and T-Mobile US (TMUS), Comcast (CMCSA), Verizon Communications (VZ), and AT&T (T) closed up more than +1%.
Syndax Pharmaceuticals (SNDX) closed down more than -16% after saying its MAXPIRe Phase 2 trial of its axatilimab to treat idiopathic pulmonary fibrosis failed to meet its primary endpoint.
AST SpaceMobile (ASTS) closed down more than -8% after Piper Sandler downgraded the stock to neutral from overweight.
SentinelOne (S) closed down more than -6% after announcing that it intends to offer $1.25 billion in convertible senior notes due in 2031 via private placement.
Johnson & Johnson (JNJ) closed down more than -5% to lead losers in the Dow Jones Industrials after forecasting full-year sales of $101.00 billion to $101.40 billion, the midpoint below the consensus of $101.24 billion.
Domino’s Pizza (DPZ) closed down more than -5% after reporting Q3 total domestic store comparable sales growth of +0.30%, below the consensus of +0.72%.
Meta Platforms (META) closed up more than +2% to lead gainers in the Nasdaq 100, adding to Monday’s +3% gain, after releasing a new artificial intelligence model called Muse Wonder, which the company claims has “frontier capabilities.”
Ollie’s Bargain Outlet Holdings (OLLI) closed up more than +2% after its Board of Directors approved a $500 million stock buyback plan.
Amer Sports (AS) closed up more than +2% after Jefferies initiated coverage on the stock with a buy recommendation and a price target of $42.
Earnings Reports (10/14/2026)
Bank of America Corp (BAC), Blackrock Inc (BLK), Fastenal Co (FAST), Morgan Stanley (MS), Progressive Corp/The (PGR), State Street Corp (STT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Finish Lower Ahead of Wednesday’s CPI Report

(RTTNews) - Johnson & Johnson (JNJ), a global healthcare company, reported new three-year data showing sustained clinical and endoscopic remission with Tremfya in adults with active Crohn's disease.
The findings come from the Phase 3 GALAXI 2 and GALAXI 3 long-term extension (LTE) studies and is being presented at the American College of Gastroenterology (ACG) 2026 Annual Scientific Meeting, held October 9-14 in Nashville, Tennessee.
Crohn's Disease
Crohn's is a chronic inflammatory bowel disease that can affect any part of the digestive tract. Symptoms include abdominal pain, diarrhea, weight loss, and intestinal inflammation with no current cure.
Tremfya (guselkumab)
Tremfya is a monoclonal antibody that blocks interleukin-23 (IL-23), a protein involved in inflammatory responses. It also binds to CD64, a receptor found on cells that produce IL-23.
Phase 3 GALAXI 2 & GALAXI 3 Results
The global Phase 3 LTE studies evaluated tremfya in adults with moderately to severely active Crohn's disease who had an inadequate response or intolerance to conventional therapies or biologic treatments.
Patients received intravenous induction followed by subcutaneous maintenance treatment with either 100 mg every eight weeks or 200 mg every four weeks.
At Week 144, clinical remission rates were 94% with the 100 mg regimen and 91% with the 200 mg regimen. Both groups achieved a 90-day corticosteroid-free clinical remission rate of 88%.
Endoscopic remission, which measures improvement in intestinal inflammation and lesions, was achieved by 52% of patients receiving 100 mg every eight weeks and 61% receiving 200 mg every four weeks.
Overall, 74% of tremfya-treated patients remained on treatment through three years. The safety findings through Week 144 were consistent with tremfya's established safety profile in Crohn's disease, J&J noted.
The company said the long-term findings demonstrate sustained clinical and endoscopic outcomes across both maintenance regimens.
J&J Global Immunology Therapeutic Area Head David M. Lee said, "The three-year remission data reinforce the company's commitment to generating long-term evidence to support treatment decisions for patients with Crohn's disease."
Stock Quote
JNJ closed Monday's trade at $263.73, up 0.88%.
In the overnight market, the stock rose 0.77% to $265.75.

J&J Reports Up To 94% Clinical Remission With Tremfya In 3-Year Crohn's Data

The following companies are expected to report earnings prior to market open on 10/13/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
J P Morgan Chase & Co (JPM)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 6 analysts that follow the stock is $5.94. This value represents a 17.16% increase compared to the same quarter last year. In the past year JPM has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 9.84%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for JPM is 13.78 vs. an industry ratio of 16.00.
Johnson & Johnson (JNJ)is reporting for the quarter ending September 30, 2026. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.53. This value represents a 9.64% decrease compared to the same quarter last year. In the past year JNJ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.11%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for JNJ is 23.38 vs. an industry ratio of 19.20, implying that they will have a higher earnings growth than their competitors in the same industry.
UnitedHealth Group Incorporated (UNH)is reporting for the quarter ending September 30, 2026. The hmo company's consensus earnings per share forecast from the 8 analysts that follow the stock is $4.12. This value represents a 41.10% increase compared to the same quarter last year. In the past year UNH has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 29.15%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for UNH is 19.11 vs. an industry ratio of 21.20.
The Goldman Sachs Group, Inc. (GS)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $12.90. This value represents a 5.31% increase compared to the same quarter last year. In the past year GS has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 44.99%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GS is 13.27 vs. an industry ratio of 16.00.
Wells Fargo & Company (WFC)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.85. This value represents a 6.94% increase compared to the same quarter last year. WFC missed the consensus earnings per share in the 1st calendar quarter of 2026 by -1.27%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for WFC is 11.49 vs. an industry ratio of 16.00.
Citigroup Inc. (C)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.66. This value represents a 18.75% increase compared to the same quarter last year. In the past year C has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 15.81%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for C is 11.59 vs. an industry ratio of 16.00.
Domino's Pizza Inc (DPZ)is reporting for the quarter ending September 30, 2026. The restaurant company's consensus earnings per share forecast from the 9 analysts that follow the stock is $4.33. This value represents a 6.13% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for DPZ is 16.33 vs. an industry ratio of 3.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Albertsons Companies, Inc. (ACI)is reporting for the quarter ending August 31, 2026. The consumer company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.31. This value represents a 26.19% decrease compared to the same quarter last year. ACI missed the consensus earnings per share in the 2nd calendar quarter of 2026 by -28.85%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for ACI is 7.39 vs. an industry ratio of 17.40.
FB Financial Corporation (FBK)is reporting for the quarter ending September 30, 2026. The bank (northeast) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.21. This value represents a 13.08% increase compared to the same quarter last year. FBK missed the consensus earnings per share in the 1st calendar quarter of 2026 by -0.88%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for FBK is 11.27 vs. an industry ratio of 10.90, implying that they will have a higher earnings growth than their competitors in the same industry.

Pre-Market Earnings Report for October 13, 2026 : JPM, JNJ, UNH, GS, WFC, C, DPZ, ACI, FBK

Key Points
Johnson & Johnson's fiscal 2025 sales rose about 6% to $94.2 billion, and its net income includes a roughly $7 billion reversal of its talc reserve.
Pfizer says it expects a significant reduction in revenue from patent and regulatory exclusivity expiries from 2026 through 2030.
Pfizer reported a net loss of $248 million in the second quarter of 2026, mainly due to $4.3 billion in non-cash intangible asset impairments.
Pfizer's $1.72 annual dividend yields about 6% at recent prices, well above the roughly 2% yield on Johnson & Johnson's $5.36.
Johnson & Johnson (NYSE:JNJ) and Pfizer (NYSE:PFE) both sell prescription medicines, offering investors different ways to own healthcare in 2026. Johnson & Johnson also runs a large medical device business, while Pfizer concentrates on biopharmaceuticals.
Pfizer is adding to its pipeline through deals such as its November 2025 purchase of Metsera, a developer of obesity treatments. Both companies are also managing the loss of exclusivity on major products.
The case for Johnson & Johnson
Johnson & Johnson reports two business segments, Innovative Medicine and MedTech. In fiscal 2025, which ended Dec. 28, 2025, Innovative Medicine generated $60.4 billion of sales and MedTech generated $33.8 billion. The company also sells IMBRUVICA, which it co-commercializes in the U.S. with Pharmacyclics, an AbbVie (NYSE:ABBV) company.
Total sales rose about 6% to $94.2 billion, and net income was $26.8 billion, with a net margin of 28.5%. That margin includes a reversal of about $7 billion in the company's talc litigation reserve, so it would have been lower without that reversal.
At the end of fiscal 2025, total debt of $47.9 billion (loans and notes payable plus long-term debt) relative to $81.5 billion of shareholder equity resulted in a debt-to-equity ratio of about 0.59x. The current ratio was 1.0x. Free cash flow, which J&J defines as operating cash flow less additions to property, plant, and equipment, was nearly $19.7 billion.
In the second quarter of 2026, reported on July 15, sales rose 6.6% to $25.3 billion, and the company raised its 2026 outlook to $100.8 billion to $101.4 billion in reported sales. In April, J&J raised its quarterly dividend to $1.34 per share, its 64th consecutive annual increase.
The case for Pfizer
Pfizer concentrates on biopharmaceuticals. According to its 2025 annual report, it supplies medicines and vaccines to about 200 countries and territories and sells primarily to wholesalers.
Eliquis alone accounted for about $8.0 billion, or 13% of 2025 revenue. Pfizer jointly developed and commercializes its COVID-19 vaccine, Comirnaty, with BioNTech (NASDAQ:BNTX), and the two companies share gross profits equally.
In 2025, Pfizer's revenue was $62.6 billion, down about 1.6% from $63.6 billion a year earlier. Net income attributable to Pfizer was $7.8 billion, a 12.4% net margin, after about $4.9 billion of intangible asset impairments and $1.1 billion of net charges for certain legal matters recorded in other deductions.
As of Dec. 31, 2025, Pfizer's total debt was $64.8 billion against $86.5 billion in shareholders' equity, a debt-to-equity ratio of about 0.75x on the same total-debt basis used for Johnson & Johnson. The current ratio was 1.2x. Free cash flow, calculated as operating cash flow of $11.7 billion less $2.6 billion of purchases of property, plant, and equipment, was about $9.1 billion. That was less than the $9.8 billion in dividends Pfizer paid that year. Over the 12 months through the second quarter of 2026, calculated free cash flow was about $11.0 billion, compared with about $9.8 billion in dividends.
In the second quarter of 2026, revenue rose about 3% to $15.0 billion, and adjusted earnings per share were $0.77, down from $0.78 a year earlier. Pfizer still posted a net loss of $248 million, mainly due to $4.3 billion in non-cash intangible asset impairments, partly offset by a $1.9 billion gain from the sale of its investment in ViiV Healthcare.
In its second-quarter release, Pfizer raised the midpoint of its 2026 revenue guidance by $500 million to a range of $60.5 billion to $62.5 billion and said that Chief Financial Officer Dave Denton would leave on Aug. 15, with Cecile Guegan serving as interim CFO.
Risk profile comparison
Johnson & Johnson's annual report says XARELTO and STELARA were among the first drugs selected for Medicare price negotiation, with government-set prices beginning in 2026. CMS has indicated that, beginning in 2027, it will remove both from the Selected Drug List. It also expects continued biosimilar launches to hurt STELARA sales.
Johnson & Johnson faces numerous lawsuits over body powders containing talc, primarily JOHNSON'S Baby Powder. On July 27, 2026, it announced a proposed resolution of the ovarian talc litigation that includes a $5.5 billion commitment, with a first payment of no more than $3 billion in 2027, and that depends on the participation of at least 95% of the remaining claims. In October 2025, it announced plans to separate its orthopedics business, with completion targeted within 18 to 24 months.
Pfizer says in its annual report that it anticipates a significant reduction of revenue from patent-based or regulatory exclusivity expiries in 2026 through 2030.
Pfizer's December 2025 outlook assumed about $1.5 billion less revenue in 2026 from products losing exclusivity, and in August, it lowered its expectation for COVID-19 products to about $4 billion from about $5 billion. The obesity programs from Metsera, which Pfizer bought for $65.60 per share in cash plus a contingent value right of up to $20.65 per share, are still in clinical development, so they do not yet offset those expirations.
Valuation comparison
Pfizer trades at lower multiples than Johnson & Johnson on both forward earnings and sales.
Metric
Johnson & Johnson
Pfizer
Forward P/E
22.4x
9.3x
P/S ratio
6.3x
2.5x
Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
While Johnson & Johnson looks like the better buy to me, I'd be a patient buyer, adding over time, because the stock isn't cheap and its proposed talc settlement still needs enough plaintiffs to sign on.
J&J earns money from two different businesses, prescription medicines and medical devices, and its sales are still growing. Management raised its 2026 sales outlook in July, and the company has increased its dividend for 64 consecutive years. That record of steady execution is what I look for in a company I'd plan to own for a long time.
Pfizer is tempting for income investors with a yield near 6%, but the trouble is what sits behind that number. Its free cash flow has covered the dividend over the 12 months through the second quarter of 2026, yet Pfizer anticipates a significant reduction in revenue due to patent and regulatory exclusivity expiries from 2026 through 2030.
A low valuation often reflects that kind of uncertainty, and the second-quarter loss from large impairments shows how a pipeline asset can lose value. The obesity programs it gained with Metsera could change the picture, though they're still in clinical development.
Whichever way you lean, I'd treat either stock as one piece of a larger healthcare allocation, and this guide on investing in healthcare stocks shows how the sector's different parts fit together. I'd plan to hold whichever one I chose for at least five years and keep adding on a regular schedule.
Should you buy stock in Johnson & Johnson right now?
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Mike Schwenk has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, BioNTech Se, and Pfizer. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

Johnson & Johnson vs. Pfizer: Which Healthcare Stock Is a Better Buy in 2026?

Johnson & Johnson JNJ and Pfizer PFE are two major healthcare companies with significant exposure to oncology. J&J also has a diversified portfolio spanning immunology, neuroscience, cardiovascular and metabolic diseases, pulmonary hypertension and infectious diseases, along with a large medical devices business. Pfizer has established operations in inflammation and immunology, rare diseases and vaccines.
Both companies are navigating, or preparing for, significant loss-of-exclusivity (LOE) pressures that could affect future revenues. Against this backdrop, a comparison of their fundamentals, growth drivers and key risks can provide useful insight into which stock may offer the more compelling investment case today.
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.
Innovative Medicine segment is the company’s primary growth engine. The segment's sales rose 6.2% organically in the first half of 2026, despite the 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.
The company’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. It is confident about achieving 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, its 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.
J&J faces its share of headwinds like the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech. Though the litigation issue is close to resolution, it has not yet been fully resolved. However, J&J looks quite confident that it will be able to navigate these challenges.
The Case for PFE Stock
Pfizer's business mix has changed significantly over the past few years. During the pandemic, the company became heavily dependent on COVID-19 products. However, it is gradually diversifying its portfolio through a combination of internal product launches like Abrysvo, Zavzpret, Elrexfio, Hympavzi, Litfulo and others, strategic acquisitions like Seagen, Metsera and Biohaven and the continued growth of several established brands like Vyndaqel, Padcev and Eliquis.
The company expects its recently launched and acquired products to record continued double-digit growth. Reflecting this trend, sales from these products increased 22% operationally in the first quarter of 2026 and 18% in the second quarter.
Pfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline. Its oncology revenues grew 5% in the first half of 2026, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.
The company is also rebuilding its pipeline in oncology and obesity, which it believes can drive growth in 2028 and beyond. Pfizer plans an extensive phase III program for berobenatide, its monthly GLP-1 receptor agonist added from last year’s Metsera acquisition. It also plans 10 phase III studies for berobenatide for obesity and obesity-related comorbidities, including knee osteoarthritis and obstructive sleep apnea. Three phase III studies on berobenatide have already begun. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028. However, in the obesity space, Pfizer lags far behind leaders like Eli Lilly LLY and Novo Nordisk NVO.
A key candidate in its oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer offers one of the highest dividend yields in the sector.
However, the company faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the LOE cliff in the 2026-2030 period as several of its key products, including Eliquis, Ibrance, Xeljanz and Xtandi, face patent expirations. The LOE cliff is expected to hurt sales by approximately $1.1 billion in 2026. Sales of its COVID products also continue to decline.
Pfizer’s revenue guidance for 2026 indicates mostly flat to slightly negative year-over-year growth.
Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years, starting from year-end 2028. Pfizer expects its recently launched and acquired products, along with a strong pipeline, to help it return to growth from 2029 onward.
How Do Estimates Compare for JNJ & PFE?
The Zacks Consensus Estimate for J&J’s 2026 implies a 7.4% year-over-year increase in sales and 7.0% in EPS. The Zacks Consensus Estimate for 2026 earnings has declined from $11.59 to $11.54 over the past 60 days, while that for 2027 earnings has declined from $12.80 per share to $12.64 over the same time frame.
JNJ Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Pfizer’s 2026 sales and EPS implies a year-over-year decrease of 0.2% and 7.5%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $2.95 per share to $2.98 per share, while that for 2027 has risen from $2.85 per share to $2.95 per share over the past 60 days.
PFE Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of J&J & PFE
Year to date, J&J stock has risen 23.7%, while Pfizer stock is up 11.7%. The industry has risen 9.5% in the same time frame.
Image Source: Zacks Investment Research
Pfizer looks more attractive than J&J from a valuation standpoint. Going by the price/earnings ratio, J&J’s shares currently trade at 20.69 forward earnings, higher than 17.60 for the industry and the stock’s 5-year mean of 15.65. Pfizer’s shares currently trade at 9.41 forward earnings, lower than the industry but higher than the stock’s 5-year mean of 9.25.
Image Source: Zacks Investment Research
Johnson & Johnson's dividend yield is 2.1%, while Pfizer's is 6.2%.
PFE or JNJ: Which Stock is a Better Pick?
J&J and Pfizer have a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This makes choosing one stock a difficult task.
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. J&J has also seen some positive developments recently surrounding its long-running talc litigation.
On the other hand, after taking a hit over the past three years largely due to a sharp decline in sales of its COVID-related products, Pfizer’s stock is gradually recovering. However, the market is still concerned about Pfizer’s ability to replace declining COVID-related revenues and offset upcoming patent expirations through new product launches, pipeline development and contributions from acquisitions.
J&J’s price appreciation, consistent earnings and sales growth, important new launches and pipeline depth make it a clear winner over Pfizer despite the latter’s better valuation and dividend yield.
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Pfizer vs. J&J: Comparing Growth, Patent Risks and Valuation

Key Points
Johnson & Johnson has a deep and diversified pharmaceutical portfolio.
The company's robotic surgical system, Ottava, could become a meaningful growth driver.
Johnson & Johnson has a fantastic dividend track record.
Johnson & Johnson (NYSE: JNJ) seems to be firing on all cylinders. The company's financial results have been strong this year, leading to a solid stock market performance. Johnson & Johnson's shares aren't too far from their all-time highs right now. However, even at current levels, it's worth investing in the company, at least for investors focused on the long game. Let's consider three reasons why.
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1. Johnson & Johnson's deep pharmaceutical pipeline
Perhaps Johnson & Johnson shouldn't be performing as well as it is. After all, the company's core Innovative Medicine business is experiencing some troubles, including stiff competition -- biosimilar and otherwise -- as well as government-led drug price negotiations. These troubles could have prevented Johnson & Johnson's sales and earnings from moving in the right direction if it hadn't had such a deep and diversified lineup of medicines across various therapeutic areas. The challenges Johnson & Johnson is facing won't go away, but investors can be confident in the company's future because its pipeline suggests it can continue to launch innovative products fairly regularly.
Johnson & Johnson is running dozens of clinical trials that could lead to new approvals or label expansions. One promising candidate in the company's pipeline is ramantamig, an investigational medicine for multiple myeloma with a novel mechanism of action that could differentiate it from existing drugs in this setting. Ramantamig is undergoing Phase 3 studies, and Johnson & Johnson estimates that it could hit peak annual sales between $1 billion and $5 billion.
Several other medicines in the company's pipeline look equally promising, and some new approvals, such as ICOTYDE for plaque psoriasis, are also poised to be blockbusters. Johnson & Johnson will encounter the occasional clinical or regulatory setback. No pharmaceutical company can completely eradicate this risk. However, the drugmaker's pipeline is deep enough to secure new approvals regularly and to deal with competition and patent cliffs while still growing its sales and earnings at a good clip.
2. Ottava could be a growth driver for a long time
Johnson & Johnson's business is diversified beyond its pharmaceutical division. The company's medtech segment also contributes meaningfully to its financial results. Johnson & Johnson markets medical devices across several areas, including vision, surgery, and cardiovascular health. The company recently strengthened its medtech division with the July clearance of the Ottava robotic-assisted surgery (RAS) system for general soft tissue procedures.
Johnson & Johnson will be fighting an uphill battle in this industry. The market leader, Intuitive Surgical (NASDAQ: ISRG), first earned clearance for its da Vinci system more than two decades ago. But the good news is that there is a large addressable market here. As Johnson & Johnson noted, fewer than 8% of relevant soft-tissue procedures are performed robotically.
That's important because, thanks to tiny, highly maneuverable instruments, robotic systems help surgeons avoid making large incisions. That can result in less bleeding, less scarring, and faster recovery times for patients. And considering how underpenetrated the worldwide market still is, there is more than enough room for multiple winners. This device may prove to be an important long-term growth driver for Johnson & Johnson, especially given secular tailwinds such as the world's aging population, which will drive higher demand for the kinds of procedures it helps facilitate with Ottava.
3. The dividend is rock solid
Arguably, one of the most attractive aspects of Johnson & Johnson is the company's dividend program. Johnson & Johnson stands out here. The company is a Dividend King, meaning it has increased its payouts for at least 50 consecutive years. Even within this elite group, Johnson & Johnson is impressive: It has increased its dividend for 64 years (and counting). Very few corporations have done better. Meanwhile, Johnson & Johnson also offers a forward yield of 2%, higher than the S&P 500's average of 1.1%. Johnson & Johnson's outstanding dividend program is another great reason to buy and hold the stock for the long term.
Should you buy stock in Johnson & Johnson right now?
Before you buy stock in Johnson & Johnson, 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 Johnson & Johnson 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 $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 30, 2026.
Prosper Junior Bakiny has positions in Intuitive Surgical and Johnson & Johnson. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.

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