Only our “novel database” enables investors to overcome those flaws and apply reliable fundamental data in their research. This low ROIC is driven by Kenvue’s 0.5 invested capital turns ratio, a measure of balance sheet efficiency, and is tied for last amongst competitors in Figure 3. More specifically, Kenvue’s competitors include the likes of Bayer Consumer health, Procter & Gamble PG , Sanofi Consumer Healthcare (SNY), L’Oréal, Unilever UL , Colgate-Palmolive CL , Kimberly Clark (KMB), and more. Our leadership reflects our consumers and brings to Kenvue a wealth of experience and diversity of perspectives. S&P Dow Jones Indices announced its intent to add Kenvue to the S&P 500 index effective prior to the opening of trading on August 25, 2023.
- This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
- Full details of the results are available in a separate press release issued this morning by Johnson & Johnson.
- At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress.
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However, the model’s predictive power is significant for positive ESP readings only. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
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The sale of these products will be discontinued in 2023, but the company still warns that litigation that isn’t covered by the indemnity remains a possibility and could adversely impact the newly-formed business. Kenvue (KVUE), the consumer health spin-off from Johnson & Johnson JNJ , is expected to start trading May 4, 2023 at a ~$40 billion valuation. • Organic growth of 4.9% was https://www.1investing.in/ comprised of 6.8% value realization, partially offset by (1.9)% volume. Strength in Essential Health was led by global growth in Oral Care as continued momentum in healthcare professional endorsements and innovation fueled growth. For full year 2024, Kenvue continues to expect an Effective tax rate between 26.5% to 27.5%, and an Adjusted effective tax rate between 25.5% to 26.5%.
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The Consumer Health segment generated revenue of $14.6 billion in Full-Year 2021 and, following the planned separation, Kenvue would generate sales in over 100 countries, driven by world-class innovation capabilities and demonstrated business momentum. With empathy, we unearth extraordinary breakthroughs in everyday care, and with courage and conviction, we bring them to life. We boldly pursue more innovative ways of working, pioneer solutions that improve lives, and create products that create categories — then improve them again and again. From best practices to best-in-class products, we learn, test, partner and optimize. Then we move fast to bring real solutions into communities, homes and hands.
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Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction) — has this insight at its core. Following the implementation of this Board succession process, Kenvue expects the Board to be composed of 11 directors, 10 of whom will be independent, as of the Company’s 2025 Annual Meeting of Shareholders. That’s not necessarily a negative, as it will mean plenty of incentive for the company to be run prudently because Johnson & Johnson will still have a lot of skin in the game. That means less risk-taking and perhaps more conservatism, which caters to the preferences of dividend investors rather than to those looking for an aggressive growth stock. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
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HSBC lifted their price target on Kenvue from $20.00 to $21.00 and gave the company a “hold” rating in a report on Wednesday, May 8th. Deutsche Bank Aktiengesellschaft lowered their price target on Kenvue from $24.00 to $23.00 and set a “buy” rating for the company in a report on Thursday, July 25th. JPMorgan Chase & Co. lowered their price target on Kenvue from $23.00 to $22.00 and set an “overweight” rating for the company in a report on Monday, July 22nd.
The danger is that even a handful of claims could potentially yield devastating results for Kenvue, as its assets and revenue stream won’t nearly be the size of Johnson & Johnson’s. Johnson & Johnson’s sheer size makes it a safe stock to buy despite the legal challenges. Kenvue, however, doesn’t enjoy that same luxury — its cash and cash equivalents as of the end of 2022 total $1.2 billion. Plus, there are many more lawsuits that could arise in the future, so that’s a big unknown to be hanging over the business right from the start. Although Kenvue is technically a separate company, Johnson & Johnson will still play a big role in its operations; the healthcare company will own a 90% stake in the business. The company also warns investors that it may continue to be subject to claims that fall outside of the previously indemnified Talc-Related Liabilities given that Kenvue still sells talc products in countries around the globe.
In its prospectus, Kenvue says it holds “leadership positions” in the consumer health market, owning top brands in pain management (Tylenol), facial care (Neutrogena), mouthwash (Listerine), and many other categories. The benefit for investors is that the business has some brand power, which in turn could give it pricing power and make it a potentially resilient company fixed assets ratio formula to invest in amid inflation. Strong diversification is one of the things investors can expect to get from owning the healthcare stock. Cautions Concerning Forward-Looking StatementsThis press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding future operating and financial performance.
This structure means that Johnson & Johnson, not new shareholders, will be able to control the outcome of matters submitted to shareholders for approval. Full details of the results are available in a separate press release issued this morning by Johnson & Johnson. You should view the News section and the most recent SEC Filings in the Investor section in order to receive the most current information made available by Johnson & Johnson Services, Inc. We’re driven to win for those we serve, and when we care fiercely for them and one another, we can deliver the best possible care. Together, we create an inclusive place where we can bring our whole selves.
Kenvue’s purpose, Realize the Extraordinary Power of Everyday Care, will guide the company’s actions and long-term aspirations, from strategy to talent philosophy, and more. For example, the creation of BAND-AID® Brand HYDRO SEAL™ acne blemish patches was born out of viral social media skincare trends. The development of this product demonstrates how Kenvue boldly pursues innovative ways to work, creating solutions that can genuinely improve people’s lives.