Johnson & Johnson (NYSE:JNJ) is a company with strong financial health and a lot of cash is currently being held for future acquisitions. JNJ is only slight undervalued, even with current revenue projections. The dividends that JNJ offers are strong and I believe that, coupled with JNJ's overall financial health, this blue chip biotech company is a risk averse buy for certain portfolios.

How will J&J Grow

The pharma giant Johnson & Johnson has 3 main areas in which it markets itself including consumer OTC, medical devices, and pharmaceuticals. The diversification of JNJ's sales allows them to shrug off generic drugs that have hurt the sales of many of JNJ's pharmaceuticals. This issue of patent loss and the development of generics has led JNJ to take an aggressive approach to M&A, as shown in their recent $30 billion acquisition of Actelion, which was purchased with the intent of driving revenue growth through its rare diseases pipeline. Future speculation for JNJ acquisitions looks to the oncology market, which is expected to grow by 37% percent over the next 5 years up to $140 billion. Of course, they may still look to other areas for M&A.

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