Johnson & Johnson (NYSE:JNJ) is Cardinal Capital Management’s 3rd Largest Position

Johnson & Johnson (NYSE: JNJ), a multinational corporation founded in 1886, is a leading global healthcare company that develops, manufactures, and sells various products in the pharmaceuticals, medical devices, and consumer packaged goods sectors. As of Q4 2021, Johnson & Johnson was the third-largest position in Cardinal Capital Management's portfolio, according to the firm's 13F filing with the Securities and Exchange Commission (SEC).

Cardinal Capital Management, an SEC-registered investment advisor based in New York City, manages over $14 billion in assets across various equity strategies, including long-only, long-short, and market neutral. The firm's investment approach focuses on fundamental research and a bottom-up investment process, aiming to identify undervalued companies with strong competitive advantages and growth prospects.

As of Q4 2021, Cardinal Capital Management reported holding approximately 14.5 million shares of Johnson & Johnson, representing a total investment value of around $1.4 billion based on the stock's average price during the quarter. This position accounted for approximately 3.6% of the firm's total portfolio and made Johnson & Johnson the third-largest holding in their equity portfolio, behind only Microsoft Corporation (MSFT) and Alphabet Inc. (GOOGL).

Johnson & Johnson's diverse business segments include:

1. Pharmaceuticals: This segment includes prescription medicines and over-the-counter (OTC) products, with key therapeutic areas such as oncology, immunology, neuroscience, and cardiovascular and metabolic diseases.

2. Medical Devices: This segment includes medical devices, diagnostics, and surgical equipment, with a focus on areas such as orthopedics, neurovascular, and advanced sterilization technologies.

3. Consumer Health: This segment includes OTC and personal care products, with well-known brands such as Tylenol, Motrin, and Benadryl.

The company's strong financial performance, innovative products, and diverse business segments have made it a consistent performer in the healthcare industry, despite facing challenges such as regulatory scrutiny and competition from other pharmaceutical and medical device companies. In Q4 2021, Johnson & Johnson reported revenue of $24.5 billion, up 6.4% year-over-year, and adjusted earnings per share of $2.45, up 14.5% year-over-year.

Cardinal Capital Management's investment in Johnson & Johnson reflects the firm's belief in the company's long-term growth prospects and its position as a leader in the healthcare industry. The firm's investment in JNJ also highlights the importance of the healthcare sector in the broader economy and the growing demand for healthcare products and services, particularly in the context of an aging population and increasing healthcare costs.