JNJ and AstraZeneca Stock Are On Sale
After topping $170, selling volume accelerated in recent days. Johnson & Johnson (NYSE:JNJ) stock fell sharply last Friday when markets dipped. At a forward price-to-earnings or P/E of 15.5 times, JNJ stock is on sale. The U.S. Food and Drug Administration's approval of its Covid-19 vaccine is a positive catalyst.
Market participants who bid up shares of BioNTech (NASDAQ:BNTX) and Moderna (NASDAQ:MRNA) should consider holding JNJ for its dividend. The company is a well-diversified drug firm whose stock dip usually ends quickly. Besides, the vaccine approval is a positive catalyst for JNJ stock that will end its decline.
AstraZeneca’s (NYSE:AZN) downtrend continued since last July 2020. At the time, speculators bid shares to a $62 high, betting on its vaccine lifting revenues. At a dividend that yields almost 3%, the stock’s 15x forward P/E is too cheap to pass up.
On Feb. 24, AZN said that it expects the U.S. will approve its vaccine this April. That would immediately result in the company shipping 30 million doses. At a lower cost and more stability for shipping, AZN’s vaccine has more convenience than BNTX or MRNA. The vaccine may not work as well for COVID-19 vaccine variants or may have lower efficacy. Still, that trade-off is worth it if the U.S. wants to get as many people as possible vaccinated sooner.
