This week’s pick for CFR will be Johnson and Johnson (JNJ). As we continue to diversify our portfolio, we believe that JNJ offers an opportunity to further explore into the rapidly growing healthcare industry. J&J operates across two primary businesses: innovative medicine and MedTech, giving the company exposure to areas ranging from oncology to cardiovascular and surgical technologies.
J&J has long been viewed as a stable healthcare position, but its recent investments suggest an aggressive approach towards the future. An opportunity for substantial growth. In particular, the company is expanding its oncology and autoimmune pipelines through acquisitions and partnerships focused on emerging treatments that could reshape how difficult diseases are treated.
Why Now?
Our interest in J&J comes from its recent investments in two promising biotechnology companies. On July 29, J&J completed its $1 billion acquisition of Firefly Bio, adding new technology focused on developing more targeted cancer treatments. That same day, J&J announced a partnership with Sail Biomedicines to develop a new form of CAR-T therapy for autoimmune diseases. J&J committed $785 million to the partnership and gained the option to acquire Sail for an additional $2.58 billion. Together, these deals show J&J’s continued investment in expanding its pipeline and taking steps towards long-term growth.
J&J’s core business remains strong. Second-quarter 2026 sales increased 6.6% year-over-year to $25.3 billion, while adjusted EPS (earnings per share) reached $2.90. The company expects approximately $101 billion in sales for the full year.
Why-to-Buy
J&J offers an attractive combination of stability and future growth. Its established pharmaceutical and medical device businesses generate significant revenue, while investments like Firefly and Sail could strengthen its position in cancer and autoimmune treatments. Although these new technologies carry risks, J&J has the size and financial strength to make long-term investments without relying on any single treatment to succeed. With a strong existing business and continued investment in new medicines, Johnson & Johnson is CFR’s Pick of the Week!
