Johnson & Johnson's Getting Back to Double-Digit Growth. Has the Stock Become a Bargain Buy?

Core Viewpoint - Johnson & Johnson is positioning itself for significant growth, particularly in its oncology segment, which could make its stock an attractive investment opportunity in the coming years [2][3][4]. Financial Performance - In 2025, Johnson & Johnson reported a revenue increase of 6% to $94.2 billion, consistent with its historical growth patterns [2]. - The company anticipates revenue of $100.5 billion for 2026, reflecting a projected growth rate of approximately 6.7% [4]. Growth Potential - CEO Joaquin Duato expressed optimism about achieving double-digit growth by the end of the decade, driven largely by advancements in oncology [3]. - The oncology business is expected to generate $50 billion, doubling its previous year's performance [3]. Valuation Metrics - The stock currently trades at around 21 times its trailing earnings, with a price-to-earnings-growth (PEG) ratio of about 1.2, indicating it may not be a bargain but still presents a reasonable investment opportunity [5]. - The stock is viewed as a safe-haven investment, offering a dividend yield of 2.3%, which could enhance its attractiveness as a long-term buy [6].