Should You Buy Kenvue Stock After Its 30% Plunge?

Core Viewpoint - Kenvue, the spinoff of Johnson & Johnson's consumer health unit, has faced significant challenges since its inception, including a recent 30%+ decline in stock price due to controversies surrounding its Tylenol product [1][6]. Group 1: Company Performance - Kenvue was spun off from Johnson & Johnson in 2023 and includes well-known products like Band-Aid, Listerine, Tylenol, and Zyrtec [1]. - The company has underperformed since the spinoff, leading to a major sell-off and a decline in stock price [1][5]. - Kenvue's stock was already down significantly before the recent controversy, prompting leadership changes and a strategic review [5]. Group 2: Tylenol Controversy - President Trump suggested a link between Tylenol use during pregnancy and increased autism risk, leading to immediate stock price declines and potential lawsuits [2]. - The FDA began revising labels for Tylenol to include warnings about its use during pregnancy, although it acknowledged that a causal relationship has not been established [5]. - Kenvue and several medical organizations have rejected the claims linking Tylenol to autism, emphasizing the lack of credible evidence [3][4]. Group 3: Investment Considerations - Despite the controversies, Kenvue offers an attractive forward dividend yield of 5.1% and is part of the Dividend Kings group, having increased dividends for over 50 consecutive years [6]. - The stock trades at a forward earnings multiple of 14.8, making it potentially appealing for income investors despite the challenges it faces [7]. - Some analysts suggest that the long-term impact of the Tylenol controversy may be mitigated by the strong backlash from reputable medical groups [6].