If you ask CNBC’s Jim Cramer, Johnson & Johnson’s earnings report in addition to subsequent rally settled the bull-bear divide in which has plagued its stock recently.
“First, though, let’s talk about why the stock became so contentious. Part of This particular simply comes down to the fact in which, even though JNJ is actually an incredibly well-run company in which’s in fabulous shape, This particular belongs to a cohort in which hasn’t been getting much love lately, the recession-proof space,” the “Mad Money” host said.
Because the global economy is actually expanding, Cramer said analysts are less inclined to upgrade Johnson & Johnson’s stock when they can upgrade industrial or technology names instead.
nevertheless after a strong earnings report, which showed over 15 percent growth in Johnson & Johnson’s pharmaceutical business, Cramer said the debate is actually settled.
“While JNJ has been a real battleground in recent months, after yesterday’s phenomenal quarter, the bulls have scored a decisive victory,” he said. “Not all opinions are created equal from the stock market, nevertheless This particular sure does make This particular tough on you, doesn’t This particular? Eventually someone is actually going to be right in addition to someone else will be wrong. With JNJ, yesterday’s quarter tells us the bulls were right, in addition to I think the stock could have more upside here.”