As highlighted over and over, Johnson & Johnson (JNJ) constantly fails to generate the strong results reflected by the price of the stock. The healthcare company had a horrible Q2, yet the stock hit a new all-time high during the quarter. My investment thesis remains very negative on the stock due to the disconnect between the market valuation of JNJ and the actual results.

JNJ reported some rather horrible Q2 results, though probably not so bad considering the economic shutdown. The key is that the actual results in relation to the stock price has a huge disconnection.

The healthcare company reported sales dipping 9% while the EPS fell 35%. The company was hit hard due to the deferral of medical procedures during the COVID-19 pandemic fears. The recent surge in hospitalizations in large parts of the country during July could easily hit results hard again this quarter.

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