There are a few high-quality, defensive U.S. companies in the consumer disposables sector that have recently caught my eye. The fear and certainty of this coronavirus outbreak have actually made such companies much more appealing. One such company is Johnson and Johnson (NYSE:JNJ).
As far as defensive companies go, Johnson and Johnson is about as defensive a pick as one can get. A significant portion of the company’s product placement portfolio is in the personal health and hygiene segment. While the portfolio of products that Johnson and Johnson focuses on are diversified, Johnson and Johnson’s products are generally related to personal care. Personal care is one area we’re all paying more attention to right now!
The vast majority of companies can expect to see top and bottom line reductions in months and quarters to come. Due to stay at home orders, consumers are staying indoors and spending less. Factories are also slowing down or even shutting down, in some cases. While the efforts to prevent the spread of coronavirus have largely been successful, and saved lives, they have also taken a toll on industry.
Johnson and Johnson may be one of the few companies out there that could possibly see sales spike as consumers buy more necessities and stock up on many of the products supplied by JNJ in the near term.
Invest wisely my friends.