Jim Cramer advises caution on buying momentum stocks, citing JNJ as an example.

Jim Cramer advises caution on buying momentum stocks, including Johnson & Johnson (JNJ), citing that it's too early to invest in such stocks. He suggests waiting for analysts to come out and recommend buying JNJ, which has seen consistent growth since its last quarter. Cramer believes that buying momentum stocks can preclude a serious tech rally or speculative surge.

Title: Jim Cramer Advises Caution on Johnson & Johnson (JNJ) Momentum Stocks

Jim Cramer, a prominent financial analyst, has recently advised investors to be cautious about buying momentum stocks, including Johnson & Johnson (JNJ). According to Cramer, it is too early to invest in such stocks, and he suggests waiting for analysts to provide a more favorable recommendation before making a decision to buy JNJ. This caution comes as JNJ has seen consistent growth since its last quarter, which has led to increased investor interest.

Cramer believes that buying momentum stocks at this stage could potentially preclude a serious tech rally or speculative surge. He advises investors to remain patient and wait for the broader market conditions to align more favorably before making a move on JNJ. This approach is aimed at minimizing the risk of investing in a stock that may not yet be fully evaluated by the market.

Johnson & Johnson's strong performance in the second quarter of 2025 is evident from its operational sales growth of 4.6% across the business. In its Innovative Medicine sector, the company reported a 3.8% operational sales growth, achieving more than $15 billion in quarterly sales for the first time [1]. The company's MedTech division also showed robust growth, with a 6.1% operational sales increase, driven by strong momentum in cardiovascular, surgery, and vision sectors.

The company has raised its full-year sales and EPS guidance, reflecting its confidence in the market performance and the potential of its diverse portfolio. Despite this positive outlook, Cramer's advice underscores the importance of a balanced approach to investing, especially when it comes to momentum stocks. Investors are encouraged to consider the broader market dynamics and wait for analysts' recommendations before making significant investment decisions.

References:
[1] https://www.marketscreener.com/news/johnson-johnson-2025-second-quarter-earnings-transcript-ce7c5fdbdc8af627