Jim Cramer, the host of the CNBC market segment show Mad Money, remains bullish on Johnson & Johnson (NYSE: JNJ) stock. He explained to his viewers in a round that the medical giant is available at a discounted price. He also stressed that JNJ might never be this low again, as it recently bagged an FDA approval for a new drug. The stock market veteran called it“one of the greatest American companies out there,”urging traders to accumulate” when everyone else is selling it.”
Here are the two drugs that the FDA approved recentlythat have kept Johnson & Johnson stock in the spotlight. Another two drugs, Ottava and JNJ-78934804, could also receive a nod from the FDA. The world’s leading pharmaceutical company is down more than 6% in a month and trading at $227. JNJ has remained rangebound in value for a week, with little to no price spurts in the charts. This has made Jim Cramer go bullish on Johnson & Johnson stock, citing that the company is primed for an uptick after it bottoms out.
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Jim Cramer explained that Johnson & Johnson stock offers greater upside potential after the upcoming drugs get FDA approval.“You don’t get a chance to buy the best at a discount very often,”said Cramer. The analyst added that traders can accumulate JNJ at every dip and hold on for the long term.“When you do, you buy some, then you let it fall a little more, and you buy some more.”
Johnson & Johnson stock could dip as the pharma sector currently remains in muddy waters, said Jim Cramer.“And we’ll likely get that opportunity because pharma is so out of favor. Why J&J right now? We’ve had a lot of noise in healthcare. It’s obscured a major FDA approval for a new J&J drug, Icotyde, an autoimmune drug for the treatment of moderate to severe psoriasis, which is a gigantic market,”he summed it up.
Source: Watcher Guru
