Drug Division Drives Steady Quarter for Johnson & Johnson

Damien Conover: Johnson & Johnson reported third-quarter earnings that largely surpassed consensus expectations but were largely in line with our expectations and so we're not changing our fair value. We think the stock is slightly overvalued but still very well positioned for growth on a fundamental basis and really believe that the firm has a strong wide economic moat. 

When looking at the quarter, the drug division again helped lead overall results. They've got a lot of new products hitting the market that are really in areas of unmet medical need that allows them to price these drugs very well. The uptake is very strong because there's a lot of unmet medical need.