Inflation surged 8.5% in July, lower than major consensus estimates, thanks to aggressive Federal rate hikes and declining gasoline prices. Moreover, wholesale inflation plunged on a month-to-month basis, marking the first such decline in more than two years. Rubeela Farooqi, the chief U.S. economist at High-Frequency Economics, said, “The July deceleration is a move in the right direction.”

However, market volatility is rife, as is evident from the CBOE Volatility Index’s 16.6% year-to-date gains. Nonetheless, according to Morning Consult’s Index of Consumer Sentiment, confidence among U.S. adults improved in July, post an extended freefall.

In addition, the Nasdaq 100 has gained 12.1% over the past month. Moreover, improving investor sentiment led to the Nasdaq hitting its highest level last week, a record level since May 2022.

Given the backdrop, we think adding fundamentally-sound Nasdaq 100 stocks Johnson & Johnson (JNJ - Get Rating), The Procter & Gamble Company (PG - Get Rating), and Novo Nordisk A/S (NVO - Get Rating) to your portfolio could be wise now.

Johnson & Johnson (JNJ - Get Rating)

JNJ and its subsidiaries research, develop, manufacture & sell a range of products in the healthcare field worldwide. It operates through three segments: Consumer Health; Pharmaceutical; and MedTech.

On June 20, 2022, JNJ announced the launch of the new J&J Satellite Center for Global Health Discovery at Singapore’s Duke-NUS Medical School, jointly established by Duke University and the National University of Singapore. This center is a pioneer in the Asia-Pacific region and aims to carry out advanced work on Flaviviruses, like dengue and zika, demonstrating JNJ’s continued healthcare growth.

JNJ’s reported sales increased 3% year-over-year to $24.02 billion in the fiscal 2022 second quarter. Its adjusted net earnings came in at $6.91 billion, up 4.3% year-over-year, while its adjusted EPS came in at $2.59, up 4.4% year-over-year.

Analysts expect JNJ’s revenue and EPS to increase 4% and 5.1% year-over-year to $98.90 billion and $10.58, respectively, in fiscal 2023. In addition, it has surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past nine months, the stock has gained 2.5% to close the last trading session at $167.14.

JNJ has an overall A rating, which indicates a Strong Buy in our proprietary POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

JNJ has an A grade for Stability and a B grade for Growth, Value, and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #2 out of 171 stocks. Click here for the additional POWR Ratings for Momentum and Sentiment for JNJ.

The Procter & Gamble Company (PG - Get Rating)

PG provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.

On July 20, 2022, PG and Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, launched a new exclusive 360° virtual home shopping experience. Given the e-commerce surge over the past two years, this digital innovation should help the company drive growth and value.

Moreover, on June 8, 2022, PG and Microsoft Corp. (MSFT) announced their collaboration, whereby MSFT Cloud would assist the future of digital manufacturing at PG. This partnership should prove strategically beneficial for PG.

PG’s net sales came in at $19.52 billion for its fourth quarter ended June 30, 2022, up 3% year-over-year. Its net earnings came in at $3.05 billion, up 5% year-over-year. Also, its EPS came in at $1.21, up 7.1% year-over-year.

For the quarter ended September 2022, PG’s revenue is expected to increase 3.3% year-over-year to $20.57 billion. Its EPS is estimated to grow 4.6% per annum for the next five years. Moreover, it surpassed EPS estimates in three of the four trailing quarters. Over the past year, the stock has gained marginally to close the last trading session at $145.26.

PG’s overall B rating equates to a Buy in our proprietary rating system. It has a B grade for Stability and Quality.

Within the Consumer Goods industry, it is ranked #14 out of 58 stocks. Click here for the additional POWR Ratings for Growth, Value, Momentum, and Sentiment for PG.

Novo Nordisk A/S (NVO - Get Rating)

Headquartered in Bagsvaerd, Denmark, healthcare company NVO researches, develops, manufactures, and markets pharmaceutical products worldwide. It operates in two segments, Diabetes and Obesity care; and Biopharm.

On July 11, 2022, NVO announced that its phase 1 & 2 FRONTIER1 dose-escalation study in treating people with haemophilia A met its primary safety endpoint. This drug is expected to offer advanced treatment therapy to all haemophilia A sufferers and should significantly increase the company’s revenues in the near term.

Moreover, on July 10, 2022, NVO announced the phase 3 results of the explorer7 study, monitoring the efficacy and safety of prophylactic treatment with concizumab in people living with haemophilia A or B with inhibitors. The results showed a promising 86% reduction in treated spontaneous and traumatic bleeds.

NVO’s net sales increased 24.9% year-over-year to DKK41.27 billion ($5.71 billion) for its second quarter ended June 30, 2022. Its operating profit came in at DKK18.39 billion ($2.54 billion), up 24.4% year-over-year. In addition, its net profit came in at DKK13.32 billion ($1.84 billion), up 9.9% year-over-year.

Street expects NVO’s revenue to increase 12.7% year-over-year to $23.57 billion in 2022. Its EPS is expected to increase 7.1% year-over-year to $3.30 in 2022. Also, its EPS is estimated to increase 17.3% year-over-year to $3.87 in 2023. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past six months, the stock has gained 10% to close the last trading session at $108.79.

NVO’s overall A rating indicates a Strong Buy in our proprietary rating system. NVO has an A grade for Quality and a B for Value and Stability.

Within the Medical – Pharmaceuticals industry, NVO is ranked #4. Click here for the additional POWR Ratings for Growth, Momentum, and Sentiment for NVO.

JNJ shares were trading at $166.18 per share on Friday afternoon, down $0.96 (-0.57%). Year-to-date, JNJ has declined -1.61%, versus a -10.02% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

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