Should You Buy Johnson & Johnson Stock in October?

JNJ stock's always been a good pick for the long-term healthcare investor, though short-run price volatility is likely

With a market cap of $340 billion, Johnson & Johnson (NYSE:JNJ), the healthcare giant, is currently number 37 on the Fortune 500 list. Over the past 12 months, JNJ stock is down about 7%. This compares to a more than 16% drop in the iShares U.S. Pharmaceuticals ETF (NYSEArca:IHE) which includes JNJ shares at a whopping 22.6% weighting among its 45-stock portfolio.

In August, the consumer and pharmaceutical healthcare firm made the news when an Oklahoma judge found Johnson and Johnson guilty of helping fuel the state’s opioid crisis by aggressively marketing painkillers. The ruling came amid various lawsuits that the company faces regarding its talc-based baby powder.

Now many investors are wondering whether there could be more headaches ahead for the company and how the JNJ stock price might fare in the last quarter of the year. Until its next earnings report in mid-October, I expect JNJ shares to trade between a range, mostly $120-$130. Long-term investors may regard any upcoming weakness in the Johnson & Johnson stock price as opportunity to buy into the shares.

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