Based in Franklin Lakes, New Jersey, Becton, Dickinson, and Company (BDX) are global medical technology companies dedicated to promoting healthcare through innovative medical devices, laboratory equipment and diagnostic solutions.
Companies worth more than $10 billion are usually classified as “large caps,” with Becton, Dickinson and Company comfortable fitting into this category to a market capitalization of $64.9 billion. BDX plays a pivotal role in the healthcare industry, offering a comprehensive portfolio of products designed to improve medication management, enhance infection prevention and ensure diagnostic accuracy.
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However, BDX stocks were 10.3% below their 52-week high of $251.99, a hit on February 3rd. BDX has earned a small amount over the past three months, falling below the 2.8% gain of the Healthcare Select SPDR Fund (XLV) 2.8% over the same time frame.
In the long term, BDX has declined by 3.5% over the past six months and 4.7% over the past 52 weeks. In comparison, XLV has declined by 7.2% over the past six months, and has been slightly soaked over the past year.
To confirm the recent bearish trend, BDX has been below its 200- and 50-day moving average since early February.
Shares in Becton, Dickinson and Company fell 7.3% after their first quarter revenue release on February 5th despite strong results. The adjusted EPS increased its 28% year-on-year to $3.43, surpassing Wall Street's estimated $2.98, while revenues rose 9.8% to $5.17 billion, breaking consensus forecasts. Growth was driven by strong demand across its healthcare and life sciences segments, along with growing margins.
The company also raised guidance for fiscal year 2025, projecting the adjusted EPS between $14.30 and $14.60. However, investors' concerns about macroeconomic headwinds and impact on foreign currency were the weight of stocks.
Emphasizing performance contrast, BDX's competitor Baxter International Inc. (Bax) has experienced a 12.9% DIP over the past six months and a 17.7% drop in the past year.
Despite the low price performance, analysts are extremely optimistic about the BDX outlook. The stock has a “strong buy” consensus rating from 17 analysts. The average price target of $273.47 reflects a 21% premium over current price levels.
On the date of publication, Kritika Sarmah had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, see BarChart's disclosure policy.
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