Johnson & Johnson Stock (JNJ) Emerges as Undervalued Opportunity Amid MedTech Transformation

Johnson & Johnson shares have retreated to 2021 levels, trading in the upper $170s despite demonstrated operational progress. Second-quarter results revealed accelerating growth, with revenue climbing 5.8% year-over-year to $23.7 billion. The company's Innovative Medicine division crossed the $15 billion quarterly threshold for the first time, powered by oncology blockbusters DARZALEX and CARVYKTI alongside immunology drug TREMFYA.

The compelling valuation case now centers on MedTech's evolution into a growth engine. Abiomed's scaling, electrophysiology gains, and OTTAVA's early momentum signal a strategic pivot. Market pricing appears to overlook this transformation, creating a potential mispricing opportunity. With dividend appeal strengthening amid anticipated rate cuts, JNJ presents a rare value proposition in large-cap healthcare.