| dchamber Thu Feb 09, 2006 4:53 pm |
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JNJ
JNJ
P/E is the lowest since the mid 90s.
Good dividend.
Financially strong.
ROE always over 25%.
Book growing at 12-15% a year.
Earnings are growing at 14% a year over the last 10 years. Analysts predict 10.8% EPS growth in the future which is certainly possible given the history.
Looks like a 15% annualized gain over 10 years with low risk.
I would like to see it drop to around 52 before I buy. What do you think? |
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| blast_investor Fri Feb 10, 2006 6:19 pm |
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I used to complain valuation of drug company. Now JNJ valuation is not that high at PE of 17.
On the other hand, drug business has all kinds of problem, R&D cost is all time high, and new drug progress is nowhere near expected. Patents are expiring soon.
I have no idea to call what is going to happen in next decades for J&J drug business. Too tough to call.
I would pass on this stock just for the sake of lack of insight in this industry. |
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