Johnson & Johnson's Getting Back to Double-Digit Growth. Has the Stock Become a Bargain Buy?

Johnson & Johnson (NYSE: JNJ) is one of the largest healthcare companies in the world. But it hasn't always been a terribly exciting business to invest in. While it has been growing, it's typically been at a modest pace. The main reason for investing in the stock has been its dividend.

The company, however, has been investing in its pipeline in the hopes of achieving better growth in the future. And that looks to be paying off, as the company recently unveiled promising guidance for the year ahead. Could Johnson & Johnson stock be a potential bargain buy in 2026?

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Johnson & Johnson expects much more growth ahead

Last month, Johnson & Johnson reported its full-year results for 2025. It was another solid year for the business, with revenue climbing by 6% to $94.2 billion. That's in line with what investors have come to expect from the business in recent years. In 2024, its top line rose by a more modest rate of 4%, but for the large part, single-digit growth has been the norm for Johnson & Johnson.

Business, however, is trending higher. The company's CEO, Joaquin Duato, believes that more growth is on the horizon, saying, "We have line of sight to double-digit growth by the end of the decade."

A big part of the reason for this growth is oncology, as Johnson & Johnson wants to be the leading cancer drugmaker in the world. It's hoping to bring in $50 billion from its oncology business, which is roughly double what it generated this past year.

Is the stock a steal of a deal?

For 2026, Johnson & Johnson management projects revenue of $100.5 billion, implying a growth rate of around 6.7%. Its top line is showing some encouraging signs of progress, potentially making this an attractive option for growth investors in the future.

Currently, the stock trades at around 21 times its trailing earnings. And based on its expected growth over the next five years, its price-to-earnings-growth (PEG) multiple is about 1.2. That's above the 1.0 cutoff that investors look for in the PEG ratio to signify that a stock is a bargain buy.

While it may not be a steal of a deal, with the business on the cusp of some exciting growth, Johnson & Johnson's stock could prove to be a good long-term buy. It's already seen as a safe-haven type of stock to own, as it pays a solid dividend that yields 2.3%. Adding more growth to the mix could help it soar higher in the years ahead.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.