Becton, Dickinson and Company (BDX) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about BDX stock:

  • Is BDX a buy or a sell?
  • Should I sell or hold BDX stock today?
  • Is BDX a good buy / a good investment?
  • What are BDX analyst opinions, recommendations, ratings?

Here are BDX stock buy reasons/signals:

1. Bard brings in a leading PAD franchise, with significant market growth opportunities.

2. Developed markets aren't fully converted to safety. With mandates to convert now in place in the EU, BD has the ability to expand its mature-markets safety business.

3. BD Max has enjoyed strong adoption, and with the test menu growing, this platform should continue seeing solid placements.

4. BDX profitability is improving. The YoY profit margin change was 1.06pp.

5. BDX forward dividend yield is 1.46%, higher than the industry (0.16%) and sector (0.19%) forward dividend yields.

6. BDX forward P/E ratio is 19.56, and it’s low compared to its industry peers’ P/E ratios.

7. BDX average analyst rating is Buy.

8. BDX average analyst price target ($216.62) is above its current price ($193.07).

Here are BDX stock sell reasons/signals:

1. Growth in the company's hospital consumables and capital equipment product lines is likely to remain weak, as healthcare providers remain cautious with their cash deployment.

2. BD's TriPath product line should continue struggling in the U.S. over the next year or so, given the latest recommendations for pap smears (once every two to three years, as opposed to annually).

3. BD's acquisition strategy is a new risk for a company that has avoided transformational deals for most of its long history.

4. BDX quarterly revenue growth was -5.10%, lower than the industry and sector average revenue growth (4.50% and 7.21%, respectively).

5. BDX short share of float is 5.52%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

6. BDX short interest (days to cover the shorts) ratio is 4.32. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on BDX?

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