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With a market cap of $64 billion, Franklin Lakes, New Jersey-based Becton, Dickinson and Company (BDX) is a global medical technology leader. Operating through three key segments: BD Medical; BD Life Sciences; and BD Interventional, the company offers a diverse range of solutions, including advanced catheters, diagnostic assays, and surgical products.
Companies valued at $10 billion or more are considered "large-cap" stocks, and Becton, Dickinson and Company fits this criterion perfectly. With a focus on improving patient care and advancing medical discovery, BDX is pivotal in addressing healthcare challenges worldwide. It specializes in developing, manufacturing, and selling medical devices, laboratory equipment, and diagnostic products for healthcare providers, researchers, and the general public.
Becton, Dickinson and Company's stock has fallen 11.6% from its 52-week high of $249.89, achieved at the beginning of this year. The medical device manufacturer has declined 5.4% over the past three months, lagging behind the 8% rise in the broader Dow Jones Industrials Average ($DOWI).
In the longer term, Becton, Dickinson and Company has experienced a decline of 9.4% on a YTD basis, underperforming DOWI's 17.1% increase. Additionally, BDX's shares have dipped 5.3% over the past 52 weeks, while the DOWI posted a 21.3% return during the same period.
BDX has shown a bearish price trend, trading below its 50-day and 200-day moving averages since November.
BDX reported strong Q4 results on Nov. 7, with adjusted EPS of $3.81 and revenue of $5.4 billion, both surpassing forecasts. The BD Medical segment drove growth with an 11.1% increase, bolstered by advancements in medication delivery and the strong performance of the Alaris platform, while Interventional sales rose 4.7%. The company highlighted strategic progress through innovations and its $4.2 billion acquisition of Edwards Lifesciences’ Critical Care business, offering a positive outlook for fiscal 2025 with projected revenue of $21.9 billion – $22.1 billion and adjusted EPS of $14.25 – $14.60.
Despite this, shares of the stock dropped 5.4% on that day due to rising operating expenses, including a 10.5% increase in selling and administrative costs and higher research and development expenses, which could pressure margins. Additionally, the company’s total debt surged to $20.1 billion, raising investor concerns.
Highlighting the contrast in performance, rival Edwards Lifesciences Corporation (EW) has outperformed Becton, Dickinson and Company, with EW experiencing a nearly 5% rise over the past 52 weeks and a 3.2% dip YTD.
Despite BDX’s weak price action, analysts are bullish about its prospects. The stock has a consensus “Strong Buy” rating overall from the 17 analysts in coverage, and it is currently trading below the mean price target of $278.07.
