
NYSE:BDX
This summary was created by AI, based on 2 opinions in the last 12 months.
Becton Dickinson (BDX) has undergone significant structural changes following the spin-off of its life sciences business and subsequent merger with Waters Corp, positioning itself as a pure-play medical technology company. Management has adjusted their earnings expectations for 2026 from $15 EPS down to $12.50, indicating a shift in focus towards higher-growth, higher-margin sectors. The operating margin expectations have also seen an improvement, rising from 21% to 25%. While the stock appears reasonably priced at 14x earnings, the changes have introduced a level of risk that warrants a cautious approach. Analysts have set a price target of $200, but macroeconomic factors affecting the hospital segment remain a concern for investors looking for stability.
"Canadian Tire" of healthcare products for clinics and medical offices. Products are one-use only. Elective surgeries have been cancelled, so stock has not done much. Will shine in post-Covid era. Yield is 1.38%. (Analysts’ price target is $272.31)
Healthcare gets knocked down before an election so there is a constant battle at this time of year and then it disappears after the election. This is a great company and continues to do well and you should own it or SYK-N, which he owns.
BDX vs. BSX Owns Boston Scientific instead, with a strong history of execution. One-time events threw off that execution. Hospital procedures are coming back, which will benefit the entire industry. BSX is better known for innovation.
Allan Tong’s Discover Picks The pandemic helped BDX, since most of its products are disposable. Then again, during the spring lockdown, surgeries were cancelled across the board, so use of BDX's products nearly halted. Its chart this year has been rocky, though earlier this month, the stock returned to previous highs above $280 while it has met or narrowly beat its EPS in the past four quarters. BDX continues to be profitable at a margin of 7.13% and a 15.41% five-year average revenue growth. Forward PE stands at 20.44x and it pays a dividend of 1.2%. Read BDX, BSX, ISRG and Stryker Stock: Top 4 Medical Supply Stocks for our full analysis.