Jim Cramer recently shared his thoughts on Johnson & Johnson stock. He discussed how money managers are currently betting on an economic slowdown.
Cramer said, "So let's talk about Procter & Gamble and then let's talk about a pharma company, J&J. Now, here are two companies that have products that you buy, no matter what. You need toothpaste and medicine regardless of how the economy's doing. J&J can thrive in a weak economy. If you look at the chart of the recent action, you might think it's found maybe the fountain of youth. J&J deserves to be going higher, but not at this speed, not at this pace. It's only rallying like this because a lot of money managers want to bet on a slowdown. They are passing on Eli Lilly now because it has a much higher price-to-earnings multiple, and those kinds of stocks are too risky to buy."
Johnson & Johnson develops and sells healthcare products. These include pharmaceuticals and medical technologies. The company has treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases. It also provides surgical systems, orthopaedic solutions, cardiovascular devices, and vision care products.