Investors Eye Healthcare Stocks Amid Market Uncertainty

Investors are focusing on healthcare stocks like Johnson & Johnson and UnitedHealth Group as potential safe havens amid market volatility. These companies have strong business models and consistent earnings, making them attractive choices for cautious investors.

Date: 06-03-2025

AI Rating: 7

**Johnson & Johnson**: The report highlights that Johnson & Johnson (NYSE: JNJ) has displayed remarkable consistency with 35 consecutive years of adjusted operating earnings growth prior to the COVID-19 pandemic. This strong performance is attributed to its effective shift towards brand-name drug development, which now constitutes approximately two-thirds of its net sales. The forward price-to-earnings (P/E) ratio of JNJ is noted to remain below 15, indicating attractive valuation. The stock's defensive nature and predictable cash flows in healthcare services provide additional comfort for investors, suggesting a positive outlook for the company. **Rating**: 8. **UnitedHealth Group**: Another stock mentioned is UnitedHealth Group (NYSE: UNH), which has experienced a decline of 24% recently but maintains strong fundamental aspects. The company's growth is bolstered by its healthcare solutions subsidiary, Optum, which is noted for faster sales growth and higher operating margins compared to traditional insurance segments. The forward P/E multiple being at 14 suggests a favorable valuation as it is at a 28% discount compared to its historical average. The consistent demand for healthcare should help UnitedHealth remains an appealing option for investors despite current headwinds. **Rating**: 7. **Boeing**: In contrast, Boeing (NYSE: BA) is labeled as a stock to avoid, given it has posted net losses of $35.7 billion over six years and its balance sheet lacks confidence due to ongoing production issues and labor strikes. The report indicates significant underperformance during recessions, further dampening its attractiveness. **Rating**: 3.

Stocks: BA JNJ UNH