Core Viewpoint - Johnson & Johnson (J&J) is undergoing a significant transformation to become a pure play healthcare company, which is positively impacting its stock performance and fundamentals [3][4][7]. Company Strategy - J&J has spun off its consumer health division, Ken View, to focus on innovative medicines, including oncology, immunology, neuroscience, and medical technology [3][4]. - The company is prioritizing smaller, strategic acquisitions rather than large mergers and acquisitions, which is being well-received by the market [5]. Stock Performance - J&J's stock has been trading sideways since the end of 2022 but is on the verge of a multiyear breakout, supported by improving fundamentals [6][7]. - The company raised its full-year earnings per share guidance to $10.85, indicating an 8.7% growth compared to the previous year [7]. Market Context - The healthcare sector has struggled in 2023, with only a 1.3% year-to-date increase, but there are notable winners like J&J [6]. - The upcoming earnings report on October 14 is anticipated to be a significant catalyst for the stock [6].