Jim Cramer gives Johnson & Johnson a seal of approval

CNBC’s Jim Cramer advised investors to buy stocks on Tuesday Johnson and Johnson like a long term game.

“I love how J&J has been trading over the past couple of months and after the quarter we saw this morning, I think this is the type of stock you need to buy as we head into 2023, which should be much better.” ” he said.

Johnson & Johnson beat revenue and net income expectations in its third-quarter results released ahead of the open on Tuesday. The company lowered its earnings forecast due to the impact of the strong US dollar.

The company’s shares fell 0.35% after fluctuating during the trading session, Kramer said, meaning investors now have an opportunity to buy some shares.

“J&J is a textbook recession-proof stock… It’s exactly the name you want to own when the Federal Reserve decides to slow down the economy,” he said.

He acknowledged that a strong dollar and cost inflation remain major macroeconomic headwinds for the company. However, these problems are likely to become less noticeable during 2023, he said, noting that the cost of goods has already decreased.

Adding to his bullish case for Johnson & Johnson is the company’s spin-off of its consumer health segment, which should be completed next year. “I’m sure this will be a huge catalyst,” he said.

Disclaimer: Cramer’s Charitable Trust owns stock in Johnson & Johnson.

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