Johnson & Johnson (JNJ) Upgraded to Buy as Growth and Margins Impress Analysts

Johnson & Johnson (NYSE:JNJ) ranks among the stocks to benefit from an onshoring boom. On July 23, Erste Group raised the stock rating of Johnson & Johnson (NYSE:JNJ) from Hold to Buy. The firm attributed the upgrade decision in large part to Johnson & Johnson’s superior operating margin and return on equity when compared to competitors.

Johnson & Johnson (NYSE:JNJ) has increased its sales and earnings growth estimate, according to Erste Group, with earnings per share predicted to rise by about 9% in 2025 compared to the previous year.

Based on its price-to-earnings ratio, Erste Group believes that Johnson & Johnson’s stock is attractively valued. The firm also anticipates that Johnson & Johnson’s improved growth prospects will fuel further medium-term price increases for the company’s stock.

Johnson & Johnson (NYSE:JNJ) is a notable name in the healthcare industry, which includes sub-sectors like pharmaceuticals, medical equipment, and consumer health products. The company is known for creating medications to treat a variety of conditions and diseases, including cancer, diabetes, and HIV/AIDS.

While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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