President Trump Loves Johnson & Johnson (JNJ), But Insiders Are Selling

President Trump Loves Johnson & Johnson (JNJ), But Insiders Are Selling Fahad Saleem Mon, July 27, 2026 at 3:28 PM GMT+2 3 min read JNJ Johnson & Johnson (NYSE:JNJ) is one of the health care names that showed up in President Donald Trump's financial disclosures released earlier this year. Now a top J&J executive is heading the other direction. The Insider Sale EVP of Global Corporate Affairs Vanessa Broadhurst sold 23,054 shares on July 20, a transaction worth close to $5.

8 million. That's about 50% of her stake. The stock is up 27% so far this year.

Bulls say the insider sale reflects some profit-taking and does not point to anything alarming. But let's dig deeper. The Pipeline Behind the Stock J&J has spent the last few years reshaping itself.

The 2023 spin-off of its consumer health unit and the more recent separation of its orthopedics business into DePuy Synthes were both moves to concentrate the company around higher-growth areas. Management guides to 6% operational sales growth for 2026, with the company targeting double-digit revenue growth by the end of the decade. That growth leans on a deep pharma pipeline: Tremfya and Icotyde for psoriasis and Crohn's disease, Spravato for treatment-resistant depression, Darzalex, Tecvayli and Talvey for multiple myeloma, and Rybrevant for lung cancer, plus the OTTAVA soft-tissue surgical robot working through FDA review.

J&J is one of only two U. S. companies still carrying a AAA credit rating, and it generates roughly $20 billion in free cash flow a year, enough to fund both the dividend and continued reinvestment.

What the Last Quarter Actually Showed Recent results back up some of that optimism. Revenue rose 6. 6% YoY, with the oncology franchise up 17.

3%, led by Darzalex, which grew close to 18% and stayed the company's largest product. Carvykti grew 49. 7%.

Tremfya put up 72. 5% growth and is taking share from rival treatments. Management raised its full-year adjusted EPS guidance.

The Not-So-Clean Parts It's not all upside. Stelara, J&J's older immunology blockbuster, fell YoY as biosimilar competition eats into sales, even though it still posted a 12. 8% sequential bump.

Imbruvica, a blood cancer drug, dropped 18. 5% on competitive pressure from newer BTK inhibitors. Rybrevant and Lazcluze, J&J's lung cancer combination, are growing far slower than the $5 billion-plus in 2030 peak sales J&J once projected for them.

Valuation is another factor. The stock trades at a forward P/E around 21-22x, roughly 10% above the sector median, while the dividend yield sits near 2. 2%, low for what's typically considered an income name.

Investors are paying up for the growth story, not buying it cheap. Story Continues Guinness Global Equity Income Fund stated the following regarding Johnson & Johnson (NYSE:JNJ) in its Q1 2026 investor letter : "Johnson & Johnson (NYSE:JNJ) was the Fund's top-performing stock in Q1 2026, rising 18. 7% as markets gained confidence that the company has been effectively replacing revenues of Stelara, a drug that accounted for more than 10% of sales at its peak, but 'loss of exclusivity' led to numerous biosimilar launches in 2025.

That confidence was fuelled by... ( Click here to read the full text ) Johnson & Johnson (JNJ) Is One Of Jim Cramer's Top Performing 2026 Stocks Trong Nguyen / Shutterstock. com While we acknowledge the risk and potential of JNJ as an investment, our conviction lies in the belief that some AI  stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.

If you are looking for an AI stock that is more promising than JNJ and that has 10,000% upside potential, check out our report about the cheapest AI stock . READ NEXT:  33 Stocks That Should Double in 3 Years  and  Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy .   Disclosure: None.

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