Is Johnson & Johnson (JNJ) the Best Dow Stock for the Next 12 Months?

From Yahoo Finance: 2025-04-30 14:28:00

The Dow Jones Industrial Average (DJIA) has corrected nearly 7% in 2025, down 12% from its all-time highs in late November 2024. The market remains volatile due to economic uncertainties and geopolitical tensions. Johnson & Johnson (JNJ) is one of the best and worst Dow stocks for the next 12 months.

Historically, the Dow has experienced sharp declines, with the most noticeable during the Covid-19 pandemic. The current period is confusing for market participants due to uncertainties. Lauren Goodwin, Chief Market Strategist at New York Life Investments, emphasizes the need for clarity in macroeconomic fundamentals amidst policy uncertainty.

Investors should focus on Dow stocks with earnings resilience, competitive advantages, and exposure to long-term growth themes. Stephanie Link, Hightower Advisors’ chief investment strategist, is positive about the stock market’s outlook, expecting a continued rally if corporate earnings remain strong. Large-cap Dow stocks may perform better during sell-offs.

Johnson & Johnson (JNJ) has an upside potential of 9.2% with a market cap of $374 billion and 98 hedge fund holders. The company recently announced a $55 billion investment in the US over four years. Despite potential tariffs, JNJ maintained its FY 2025 EPS guidance and increased revenue guidance. Analysts note strong Q1 results and potential risks from tariffs in the pharmaceutical business.

Overall, Johnson & Johnson (JNJ) ranks 25th on the list of best and worst Dow stocks for the next 12 months. While there is potential in Dow stocks, AI stocks may offer higher returns within a shorter timeframe. For a promising AI stock trading at less than 5 times its earnings, check out the report on the cheapest AI stock.



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