Johnson & Johnson (JNJ) has rallied ahead of the market during the ramp the last few months, but the quarterly results haven't gotten any better. My previous warning on the stock stands and this recent rally isn't warranted. The dividend yield dip to only 2.5% is a flashing red light on the limited value on the consumer healthcare stock.

Not So Impress Quarter

While the headlines screamed that JNJ smashed Q4 EPS estimates with 34% growth, the actual adjusted EPS was down 4.6% on the year. The company isn't faring so well in the market while facing tons of legal risk.

For the quarter, sales were up slightly to $20.7 billion with operational growth at 2.6%. JNJ firmly listed sales benefits from Neutrogena and Tylenol while the baby care products were down. Not surprisingly, the healthcare company was hit again with the ongoing asbestos scare during the quarter.

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