American Multinational Corporation Johnson & Johnson Performs Better

Johnson & Johnson shares  -0.15% slid 0.15% to $168.81 Thursday. This proved to be an all-around positive trading session for the stock market, with the S&P 500 Index SPX, +0.12% rising 0.12% to 4,200.88 and the Dow Jones Industrial Average DJIA, +0.41% rising 0.41% to 34,464.64. This was the stock’s fifth consecutive day of losses.

Johnson & Johnson closed $4.84 short of its 52-week high ($173.65), which the company reached on January 26th. Despite its losses, the stock outperformed some of its competitors Thursday, as Roche Holding AG Part. Cert. RHHVF, -1.47% fell 1.47% to $346.06, Merck & Co. Inc. MRK, -1.70% fell 1.70% to $75.92, and Pfizer Inc. PFE, -0.69% fell 0.69% to $38.65.true Trading volume (8.1 M) eclipsed its 50-day average volume of 7.2 M.Johnson & Johnson is the featured stock from April’s Dividend Growth Stocks Model Portfolio.

The multinational corporation is a Long Idea in February 2020 and reiterated it in January 2021. Despite underperforming the S&P 500, JNJ remains undervalued. The company has grown revenue and net operating profit after-tax (NOPAT) by 3% compounded annually over the past 10 years. The firm’s trailing-twelve-month NOPAT margin sits at 21%, which also equals the company’s average margin since 2010.

On a price return basis, the Dividend Growth Stocks Model Portfolio (+1.9%) underperformed the S&P 500 (+5.4%) by 3.5% from March 26, 2021, through April 27, 2021. The Model Portfolio (+2.1%) underperformed the S&P 500 (+5.4%) by 3.3% over the same time. The best performing stock was up 19%. Overall, 8 out of the 30 Dividend Growth Stocks outperformed the S&P 500 from March 26, 2021, through April 27, 2021.