Lorne Steinberg Becton Dickinson BDX-N PAST TOP PICK Jun 27, 2024

Healthcare supplier in North America.
90% of products are disposable - creates recurring revenue.
Expecting double digit earnings growth.
Fantastic M&A growth with good management team.
Dividend growing at a regular pace.

Pays a good dividend, is held by institutions, great earnings and has global exposure.

They have incredible reach with 90% of hospital patients touching one of their surgical and medical products

Share have been flattened, but it's now cheap. They tell a good story.

Avoid TMO because their revenues are flattening. Both trade at a high PE. BDX hasn't done much in share movement. He'd rather pay more for Boston Scientific which performs better.

With a market cap of over $60 billion it is the largest player in the medical disposables sector with 25% market share. Growth stalled for two years during COVID but is accelerating now. Its profits are solid so there is lots of room for acquisitions and a start to buying back shares. Trades at 17X earnings and there should be double digit earnings growth ahead. Can be somewhat volatile.       Buy 16  Hold 2  Sell 0

90% of their products are disposable medical supplies. Problem was that during Covid, there were fewer operations, so sales fell and are slowing catching up--8-10% growth annually in the next few years, he thinks. Stock is cheap now, but the stock has done nothing for him. Has excellent prospects.

They just reported a disappointing quarter, plunging shares 18%. Many are giving up on it, but it's a buying opportunity. For decades, this was a reliable growth stock, but in the past 5 years have been sideways. They reported beats and raises last year. They sold their life sciences division to unlock value, a smart move. But at the same time, they issued mixed guidance, including slightly lower earnings due to tariffs; they said they would have made their guidance if not for the tariffs. Trades at a low 12x this year's estimates and have bought back many shares already this year.