The share price of Johnson & Johnson (NYSE: JNJ) is up a modest 7% over the past year, but 2021 looks like it might be an even better year for the pharmaceutical giant. You can say the same for Pfizer (NYSE: PFE), whose shares are down 0.7% over the past 12 months.
These are huge companies with diversified income streams that might be getting overlooked. Pfizer is already distributing its COVID-19 vaccine, and Johnson & Johnson is working on a one-dose coronavirus vaccine. But neither needs to depend on a successful vaccine to thrive in the new year.
In both cases, I think investors may be confusing steady with stodgy. These two companies have opportunities for growth in 2021, whether from Pfizer’s large drug pipeline or Johnson & Johnson’s growing stable of oncology drugs and a likely rebound by its medical devices segment.