Inflation Hedge Stock 3/30
Added 2021-06-05 04:48:35 +0000 UTCHey Patreons, as I mentioned yesterday, I will be posting 30 companies for the next 30 days which can be a good inflation based hedge play. As I mentioned yesterday, healthcare tends to perform best during inflationary times. In this post I want to share with you another healthcare stock which will lean on this strategy and thrive during inflation.
The stock is $JNJ Johnson & Johnson Currently the price is $166 and I can see a price of $185 by the end of 2021 as inflation and real estate heat up.
JNJ is a $438B company, with almost no short interest at 0.59% only. JNJ is one of the largest publicly-traded healthcare companies in the world, generating a nice $84B in revenue in the past 12 months.
The EBITDA ($28B) margin is 33.6% and the Net Income margin is 18.5%.
It's currently trading very cheap, with a price to sales ratio of 5 and EV to EBITDA of 16 and EV to sales of 5.
The earnings are also expected to grow in double-digits in 2021, and yet its shares are extremely undervalued despite sitting on a strong pipeline as well as a COVID-19 vaccine. This makes this cash flow positive undervalued company a great addition to our anti inflation portfolio.
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
Comments
I agree with Tom 90% of the time on his analysis of just about everything. I’m new to this community after watching his series on YouTube for about 6 months. Having personally work for this company and also working for another giant in this same industry the only reason I disagree with Tom is they continually have legal issues (big & small) across a large portion of its various business sectors. I absolutely loved the culture of the J&J business sector I was a part of and believe the same culture exists with most of its business units. Alex G (CEO) is an amazing leader and I believe he’ll continue to lead them very well. I’ve had the pleasure of working with him both at J&J and his previous leadership role as I mentioned earlier. I left the one company and followed him to J&J and he actually grew up and went to the same school my wife went to for high school. Yes, I am biased because I happen to know him personally but have very limited contact with him as he obviously left MI where I still reside today and have a summer home very close to where he grew up. Even with this relationship I divested a fair share of my stock options, personal investments in J&J. I still have more than my fair share of a stake in this company. It just makes me a bit nervous with all the bad press they keep getting. The vaccine news imo is total garbage. Don’t listen to any of it. Read the dam science and understand the real risk factors vs. how the news twists the story and really only give you maybe 10% of the real clinical data. I know if your not in medical or science it’s very hard to understand all the language and scientific data. Aspirin & Acetaminophen kill more people daily then the vaccine does and both of those drugs cause irreversible organ damage when used improperly or for an extended length of time. The media has a death grip on 95% of the American population. We allowed this to happen cause we stopped actually reading. Now we listen to sound bites and read catchy headlines and go no further and think it’s gospel. If you hear or read anything from any mainstream media source (either party) instead of continuing to listen pause the dam thing cause you know it’ll still be available forever and switch to your browser and do some reading beyond the headline and the first 30 words. If someone is publishing something that bothers you and they can summarize it in one headline or two paragraphs you better stop and think! How can they say that much horrible stuff and come to a conclusion in so few words. Wake up people! As Tom always says “do your own research” Most of us better start by knowing what the word “research” even means. I’ll get off my soap box! I left J&J only because my passion in medical science was in an area that J&J isn’t doing a lot of R&D in. If it wasn’t for that reason I’d follow Alex G just about anywhere.
F430scud
2021-06-12 21:43:53 +0000 UTChttps://edition.cnn.com/2021/06/01/politics/johnson--johnson-supreme-court-2-billion-verdict/index.html
Ron Paley
2021-06-06 10:32:48 +0000 UTCMore: "Supreme Court won't review $2 billion verdict against Johnson & Johnson in talc powder case." The question is how deep is this lawsuit...
Ron Paley
2021-06-06 10:32:47 +0000 UTCMore: https://edition.cnn.com/2021/06/01/politics/johnson--johnson-supreme-court-2-billion-verdict/index.html
Ron Paley
2021-06-06 10:31:28 +0000 UTCThere is a legal and moral issue here. For decades, J&J baby powder was the most common thing one added to a baby's bottom after changing a diaper. It turns out that the introduction of this talcum powder interfered with female reproductive organs later in life and lead to cancer and death. "Johnson & Johnson announced in May 2020 it was pulling its talc-based baby powder from shelves and stopping all sales in the United States and Canada. This decision came after facing thousands of Johnson & Johnson baby powder lawsuits alleging the product causes cancer." The lawsuit is ongoing and worth billions. So..the question is...is a gain of (in your model) 11% worth the risk, or is there another company more worthy of the investment with less risk?
Ron Paley
2021-06-06 10:29:07 +0000 UTCAre you concerned about the negative impact of patent waive for the vaccine?
Jacopo Bertini
2021-06-06 07:46:17 +0000 UTCJust a technical thing. Once I got more cash I’ll add it
Generico Fakero
2021-06-06 05:14:24 +0000 UTCQQQ can be considered in this case?
Tamas Petrica
2021-06-05 17:04:55 +0000 UTCWhen you say you plan to buy soon, does that mean it has not reached your targed entry price yet or are you wating for something specific to happen ? Thanks Tom :)
JonathanBTT
2021-06-05 11:36:30 +0000 UTCCan you take a look at SE? They are the parent company of Shopee which is like Singapore and Vietnam Amazon
Tung Pham
2021-06-05 07:23:45 +0000 UTCHave not purchased yet but plan to soon
Generico Fakero
2021-06-05 05:08:52 +0000 UTCHave you purchased or currently own this stock? Thanks
Cristian ZOR
2021-06-05 05:00:49 +0000 UTCThx Tom🙏
Jani Johnston
2021-06-05 04:59:01 +0000 UTCCheers Tom
Lazar Fitness
2021-06-05 04:50:48 +0000 UTCThx
Rob
2021-06-05 04:50:14 +0000 UTC
