Special Project: Stock Portfolio Despain 3
The three companies that I have chosen for the special project are Johnson & Johnson, General
Motors and Marriott International. I chose these three companies because they all had a slight dip in value
towards the end of 2015 with strategic plans in place for 2016. These companies are all from different
industries and provided potential growth for 2016 based on my initial analysis.
Johnson & Johnson
Stock Analysis
Johnson & Johnson is a global company comprised of multiple subsidiaries that researches and
develops, manufactures and sells various healthcare products. The company offers its products to general
public, retail outlets and distributors, wholesalers, hospitals, and health care professionals for prescription
use, as well as for use in the professional fields by physicians, nurses, hospitals, eye care professionals,
and clinics. Johnson & Johnson was founded in 1885 and is based in New Brunswick, New Jersey. Their
operations are broken out in three main segments; consumer, pharmaceutical and medical devices. Under
the consumer segment, there are multiple brand names for their baby care, oral care, skin care, women’s
health care, wound care, first aid and over the counter products. Under the pharmaceutical segments they
provide multiple products in the areas of immunology, infectious diseases and vaccines, neuroscience,
oncology, and cardiovascular and metabolic diseases. The Medical Devices segment offers orthopedic
products; general surgery, biosurgical, endomechanical, and energy products; electrophysiology products
to treat cardiovascular disease; sterilization and disinfection products to reduce surgical infection; blood
glucose monitoring and insulin delivery products; and disposable contact lenses.
Although the medical device and consumer segments make up the majority of the company’s
sales combined, it is the pharmaceutical segment that is expected to be the main driver for growth. They
have plans to file more than 10 new products by 2019, with each of those products having the potential to
exceed $1 billion in Revenue. The total pharmaceutical market reached $1 trillion in 2014 with nearly
40% of the growth coming from specialty medicines, including oncology, autoimmune, respiratory and
anti-viral medications. The total global branded pharmaceuticals market is expected to grow at a
compound annual operational growth rate of ~3% from 2014 to 2019, according to IMS Health, the
independent analysis and market research service that tracks the industry.