Johnson & Johnson Owns Stakes in 15 Stocks. Here's the Best of the Bunch.

You probably know Johnson & Johnson (NYSE: JNJ) mainly for its prescription medications. Some may be familiar with the company's medical devices. But J&J has another role that many people may not know about: It's a healthcare investor.

Johnson & Johnson's latest 13F filing revealed a portfolio of 15 biotech stocks and medtech stocks. The regulatory document provides a window into where one of the world's largest healthcare companies by market cap is placing its bets. And one of those bets stands above the rest, in my opinion.

Image source: Johnson & Johnson.

A quick look at J&J's investments

Here's the full list of Johnson & Johnson's holdings as of June 30, 2026:

Data sources: Johnson & Johnson 13F filing, Google Finance. *Market caps as of Aug. 28, 2026.

One thing that immediately jumps out when looking at J&J's portfolio is that over half of its holdings are small-cap stocks. Another three are micro-cap stocks (market cap below $100 million) or nano-cap stocks (market cap below $50 million). Two of the exceptions -- Nanobiotix and Rapport Therapeutics -- aren't far above the small-cap threshold. The only true outliers are Legend Biotech and Protagonist Therapeutics.

You might also have noticed that Johnson & Johnson doesn't have large stakes in most stocks. Its biggest investment (roughly $300 million) is in Protagonist. However, that amount is basically pocket change for J&J, which boasts a cash stockpile of around $20.8 billion.

The best of the bunch

I think that it's easy to select the best stock in Johnson & Johnson's portfolio. The clear winner, in my view, is Protagonist Therapeutics. There are several good reasons why J&J is most heavily invested in this biotech stock.

Protagonist already has an approved product (Icotyde), which launched in the U.S. in March 2026. Scientists from both Protagonist and Johnson & Johnson discovered the drug. Protagonist was primarily response for early stage clinical development, while J&J took over after that point and is handling the commercialization effort.

Icotyde is currently approved for the treatment of moderate-to-severe plaque psoriasis. It's also in late-stage clinical testing for treating Crohn's disease, psoriatic arthritis, and ulcerative colitis.

By the time you're reading this, Protagonist could have another approved product in its lineup. The U.S. Food and Drug Administration (FDA) set a third-quarter date for making an approval decision on rusfertide for the treatment of polycythemia vera, a rare type of blood cancer. However, Protagonist stated in its second-quarter update a few weeks ago that the decision would be made in August 2026. Takeda Pharmaceuticals (NYSE: TAK) holds the global commercialization rights to rusfertide.

Protagonist has been a big winner for investors this year, with shares skyrocketing 65% year to date as of the market close on Aug. 28. The company is in good shape financially, too. It posted a profit of $162.8 million in Q2 and ended the quarter with a cash stockpile of $849.5 million.

Is Protagonist Therapeutics stock a buy?

Protagonist Therapeutics faces the same risks as all biotech stocks do. It could experience pipeline setbacks. Commercialization efforts of approved products could be less than hoped for. However, none of Johnson & Johnson's other holdings offer all that Protagonist does: a product already on the market, a promising pipeline, and a solid financial position.

Wall Street is overwhelmingly bullish about Protagonist Therapeutics. I agree with this upbeat take on the stock. Even after its big run, Protagonist remains a good pick for aggressive investors.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fate Therapeutics and Legend Biotech. The Motley Fool recommends Johnson & Johnson and Protagonist Therapeutics. The Motley Fool has a disclosure policy.