11 Reasons to buy J&J
10/17/2016 8:00 am EST
Our latest featured recommendation based on our data-driven system, is a healthcare firm founded in 1885, notes Nicholas Vardy, editor of Vardy's Alpha-Driven Algorithm.
Johnson & Johnson (JNJ) offers consumer products that have become household names like Listerine, Tylenol and Sudafed. It also operates in the pharmaceutical and medical devices areas as well.
11 top investment strategies that we monitor are now betting on Johnson & Johnson:
The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.
It is a top US stock based on fundamentals measured by book value, cash flow, sales and dividends.
The stock is among those that have increased dividends for at least 25 consecutive years.
Hedge Fund Alpha
Based on publicly available disclosures, successful hedge fund managers are investing in the stock.
It is one of the five highest-yielding stocks among each of the 10 sectors tracked in the S&P 500.
Goldman Sachs’ Active beta
The stock is selected according to four factors -- value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.
Selected using a multi-factor modeling approach, this is a value stock designed to enhance portfolio risk/return characteristics.
The stock also is one of the top 120 large- and mid-cap US stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.
The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).
Low Interest Rate Sensitivity
It is a large-cap US stock selected for its low volatility and positive price performance in a rising-interest-rate environment.
Insider and Analyst Sentiment
One of 100 top stocks out of 5,000 US stocks where corporate insiders (a director or senior officer of a company, or any person or entity that owns more than 10% of the company’s stock) are buying the stock and Wall Street analysts have recently increased earnings estimates.
By Nicholas Vardy, Editor of Vardy's Alpha-Driven Algorithm