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NYSE:BDX
This summary was created by AI, based on 2 opinions in the last 12 months.
Becton Dickinson (BDX) is undergoing significant transformation as it recently spun off its life sciences business and merged with Waters Corporation (WAT), shifting focus towards becoming a pure-play medical technology company. This strategic move aims to enhance growth and profitability within higher-margin areas. However, analysts have revised earnings projections downward, forecasting $12.50 EPS for 2026 compared to the previous estimate of $15. While operating margin expectations have risen to 25%, the inherent risks associated with such structural changes warrant a cautious approach. Despite a relatively inexpensive valuation at 14x, expert opinions reflect a wait-and-see attitude, with one analyst expressing reluctance to invest in turnaround scenarios, preferring investments with more certain outcomes. The anticipated price target remains optimistic at $200.
"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.