Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Johnson & Johnson’s Big Decade
One solid performer of the last decade was pharmaceutical and medical device giant Johnson & Johnson (NYSE: JNJ).
The big news of the past decade for Johnson & Johnson was the number of regulatory and legal challenges the company faced. Two of the biggest overhangs for the stock were lawsuits related to its baby powder and the company’s role in the U.S. opioid epidemic. In the past 10 years, Johnson & Johnson users have been awarded billions of dollars in settlements related to cancers linked to its baby powder. In addition, more than 500 lawsuits have been filed against Johnson & Johnson and its competitors related to the company’s production of raw opium used in the production of addictive opioid drugs.
Johnson & Johnson shares started the 2010s trading at around $65. The stock hit its low point of the decade within a year, dipping as low as $56.86 in mid-2010 before bouncing back to above $70 by the end of 2012.
From there Johnson & Johnson shares took off, hitting $100 for the first time in mid-2014. Johnson & Johnson eventually made it as high as $148.32 in early 2018.
2020 And Beyond
Despite reaching a decade high of $148.99 later in 2018. Johnson & Johnson didn’t crack the $149 level until it pushed to its all-time high of $149.40 just last week.
Even amid a flurry of legal and regulatory controversies and expenses, Johnson & Johnson has been a solid investment over the past decade.
In fact, $100 worth of Johnson & Johnson stock in 2010 would be worth $313 today, assuming reinvested dividends.
Looking ahead, analysts expect even more gains will be difficult to come by for Johnson & Johnson in 2020. The average price target among the 16 analysts covering the stock is $157.50, suggesting just 5.4% upside from current levels.
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