Is This Dow Heavyweight a Value Trap?

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The following video is part of our "Motley Fool Conversations" series, in which research analyst Catherine Baab-Muguira and industrials editor/analyst Isaac Pino discuss topics across the investing world.

In today's segment, Catherine and Isaac look at macro concerns and company-specific issues at Dow heavyweight Johnson & Johnson. For decades, this company has been a blue chip's blue chip -- one of the world's most recognized brands and one of the most widely followed and widely held stocks. But in more recent years, the company has stumbled and been forced to recall drugs. Now many value investors insist the stock is undervalued. Are they wrong?

With Europe in shambles, many investors may be nervous about investing in a company that's internationally focused, but they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover these picks today, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to click here to get your copy today!

At the time this article was published Catherine Baab-Muguira has no positions in the stocks mentioned above.Isaac Pinohas no positions in the stocks mentioned above. The Motley Fool owns shares of GlaxoSmithKline and Johnson & Johnson.Motley Fool newsletter services recommendGlaxoSmithKline, Johnson & Johnson, and Novartis. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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