JNJ stock was trading at $167.12 as of 01:13 PM EDT on Wednesday
On Wednesday, Johnson & Johnson (NYSE:JNJ) announced the name of the upcoming consumer health company, Kenvue, taking a step closer to the 2023 scheduled separation.
The company claimed that “the new corporate brand comes to life through a compelling mission and a timeless visual brand.”
The division, which is anticipated to include some of JNJ’s well-known brands like Tylenol, Neutrogena, Listerine, and Band-Aid Brand, would generate sales in more than 100 countries following the separation, the company noted.
Thibaut Mongon, who was appointed as the unit’s CEO in May, stated that “unveiling the Kenvue brand is a defining milestone for our stakeholders and a key aspect of the planned separation.” Former CVS Health (CVS) CEO Larry Merlo joined JNJ as Kenvue’s non-executive chair in August. After GSK (GSK) separated its consumer healthcare business Haleon in July, JNJ will become the most recent pharmaceutical behemoth to spin off consumer brands with the launch of Kenvue.
JNJ stock outlook
JNJ (NYSE:JNJ) was listed as one of the wise stock buys by Motley Fool on September 16. Life expectancy is anticipated to rise even higher when healthcare innovations are made, and developing countries reach economic maturity. According to projections, the average global life expectancy will increase from 71.7 years in 2022 to 77.2 years in 2050. Longer lifespans will also result in population growth, which will increase JNJ’s prospective client base. The 2.8% dividend yield of J&J exceeds the 1.6% yield of the S&P 500 index by a wide margin.
The tiny $53 million stake held by Berkshire Hathaway in the healthcare firm is negligible. But J&J is a top-tier company that is trading at a low price. The stock’s forward price-to-earnings (P/E) ratio of 16 is just somewhat higher than the S&P 500 healthcare sector average of 15.4.
Featured Image – Megapixl © Andreistanescu