Jim Cramer Says Trump Administration Should Intervene in Johnson & Johnson (JNJ) Legal Issues - 'Where Are Capitalist Instincts Here?'

We recently published a list of Top 10 Stocks to Watch as Investors Brace for Recession. In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against other top stocks to watch as investors brace for recession.

Despite some optimism in the market after President Donald Trump’s indication of possible talks with China, Wall Street analysts are warning about recession risks due to the impending impact of tariffs and an overall decline in consumer sentiment.

Adam Parker, Trivariate Research CEO, said in a recent interview with CNBC that it’s “hard” to be bullish in this market because the impact of tariffs is yet to be reflected in companies’ earnings.

Parker thinks that in the coming days, earnings reports of many companies will begin to show that we are indeed facing an economic slowdown:

“You know there’s a difference between a growth scare and and then an actual growth slowdown I think in this case it is a growth slowdown I don’t know how much of it is yet and that’s where I think the challenge is but you can’t just say oh it’s an irrational growth scare that everyone has and it’s like an uncertain I think if you have a business with pricing power if you have a business that you know you can be okay. But there’s a lot of economically sensitive businesses we’re going to hear from next week and the week after if you think about how earning season typically unfolds where we may get guidance that isn’t quite as peachy as we’ve seen from you know the original guys in the banks and then some of the higher quality tech companies have reported.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

For this article, we picked 10 stocks Wall Street is currently buzzing about. With each company, we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Investors: 81

Jim Cramer in a latest program on CNBC urged the Trump administration to step in and apply its deregulation principles to Johnson & Johnson’s (NYSE:JNJ) legal scenario.

“Johnson & Johnson, amazing company, reported today, trying to resolve a gigantic number of lawsuits involving talc that may have caused cervical cancer. The company had offered more than $8 billion to settle the cases. Some 83% of the plaintiffs accepted the deal, but a small group of plaintiffs convinced the judge to throw out the settlement. Now J&J is going to fight each case individually in the same old system of jackpot justice we’re so used to. Very bad for a lot of victims, and J&J’s now willing to settle. The administration could easily weigh in and end this plaintiff supremacy issue, an edict banning jackpot justice. Where are the capitalist instincts here?

Recently, a US bankruptcy judge rejected Johnson & Johnson’s (NYSE:JNJ) $10 billion proposal to end tens of thousands of lawsuits alleging that its baby powder and other talc products cause ovarian cancer.

Overall, JNJ ranks 5th on our list of top stocks to watch as investors brace for recession. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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