Jim Cramer on Johnson & Johnson: "One of the Best Pharmas There Is"

Johnson & Johnson (NYSE:JNJ) is one of the stocks on Jim Cramer’s radar. During the episode, Cramer discussed the company’s earnings and the following market reaction, as he stated:

Alright, what do we make of these earnings from Johnson & Johnson? This morning, the pharma titan reported a healthy revenue beat and a very modest earnings beat with a strong full-year forecast, which is I care about. However, the stock was unchanged. Now, it was down much more than that intraday in response to the print in part because it was up more than 40% last year and had a run up another 5% year to date going in the quarter. One of the best pharmas there is.

Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases. During the January 16 episode, Cramer said that selling the stock for the Charitable Trust was “wrong,” as he commented:

Wednesday morning brings two stocks that are hard to keep down. Johnson & Johnson and Charles Schwab. J&J has become a pure play on pharma by spinning off its orthopedics division. That’s smart because orthopedics happens to be a commoditized business. Meanwhile, its pharma business has some of the best drugs in the pipe, and they really shine without the knee, hip, and joint business holding them back. J&J still has a talc overhang of people willing to sue the company for all sorts of cancers allegedly caused by asbestos in their old baby powder. Now, I’m not saying these lawsuits don’t matter; that would be heartless. I am saying that they no longer matter to the stock, now that J&J’s fighting each individual claim, which can be daunting to the plaintiff’s bar. I was intimidated by the lawsuits myself, and sold it for the investing club. That was wrong. I regret listening to the Circe sirens.

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Disclosure: None. This article is originally published at Insider Monkey.