Johnson & Johnson's stock has been strong in the healthcare market, and the company's orthopedic products are still dominant, according to an Investor Place report.
But as the market changes, will the company maintain a strong position? Here are five key notes on the health of J&J's stock:
1. J&J's stock has slowed over the past few years, reporting double-digit percentage year-over-year drops in the international consumer health and medical device revenues. The company also reported a 10 percent decline in international pharmaceutical revenues.
2. The company's consumer segment reported operating sales growth year-over-year in emerging markets for the previous quarter, but the United States consumer health sales growth was slow last year and made up less than 40 percent of division revenue.
3. Developing standards for public health in emerging markets could help J&J stock going forward, as international growth remains key.
4. J&J manages a dividend payout ratio of 55 percent, according to the report, and has a record of consecutive raises for a solid long-term foundation. But the company's medical branch has sale falling and the medical devices still accounted for 35 percent of 2015 total sales.
5. J&J is moving more toward the high-growth areas for the company, including orthopedic and surgical devices, as cardiac device sales drop off, according to the report. But the device sector isn't a high-growth area overall; instead pharmaceuticals like Remicade with patent expiration around the corner could make a difference in the near-term.
6. The company is making additions to the pharmaceutical business, with more than 35 drug indications in phase III clinical trials or filed for FDA approval.