J&J is Worth as Much as Gilead, Biogen, Mylan, Celgene and Teva Combined. It’s Time to Sel

Johnson & Johnson (JNJ) now has a market cap of $308 billion dollars, just a smidgen less than that of Gilead Sciences (GILD), Biogen (BIIB), Mylan (MYL), Celgene (CELG) and Teva Pharmaceutical Industries (TEVA) combined. It’s time to sell, says Standpoint Research’s Ronnie Moas:

lucas jackson/Reuters

Johnson & Johnsonshares are at an all-time high; trading at 18X earnings and should be sold at this time…The market cap is now topping $300 billion dollars and that is nearly equal to the combined market capitalizations of Gilead Sciences, Biogen, Mylan,Celgene and Teva Pharmaceutical Industries five recent recommendations of mine…

Johnson & Johnsonrevenues are $72 billion while the combined revenues for the five names I listed above are $87 billion the P/E ratios on those five are 7X, 14X, 8X, 17X and 9X, respectively soJohnson & Johnson is trading at a 50% (P/E) premium to this (oversold) group even though revenue growth is low single-digits at Johnson & Johnson…

Since August 2010,Johnson & Johnson shares have doubled, and in my opinion, investors should lock in the gain on this overvalued — on an absolute and relative basis — name.

Johnson & Johnson was cut to Neutral from Buy at BTIG last week.

Shares of Johnson & Johnson advanced 0.5% to $112.62 at 12:26 p.m. today, while Gilead Sciences has risen 0.8% to $82.81, Biogen has jumped 2.5% to $265.23, Mylan has gained 1.6% to $41.76,Celgene has climbed 2.3% to $102.19, and Teva Pharmaceutical Industries is up 2% at $51.97.