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5 Reasons Why You Should Add Becton, Dickinson (BDX) Now
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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, is currently one of the top-performing stocks in the MedTech space.
Improvement in price performance and strong fundamentals indicate the stock’s bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio. The stock has a Zacks Rank #2 (Buy).
A long-term expected earnings growth rate of 12.8% is a positive for BD. Arguably, earnings growth is of utmost importance for determining a stock’s potential, as surging profit levels indicate solid prospects over the long haul.
Here we take a look at five other factors that are likely to provide BD with a competitive edge in MedTech in the quarters to come.
5 Factors Worth Considering
Share Price Appreciation: A glimpse of the company’s price trend reveals that shares have returned 22.2%, which compares favorably with the S&P 500 index’s rally of 6.7%. The current return is also greater than the industry’s gain of 11.6%.
The price surge can be attributed to strong investor optimism around the stock, considering that BD’s scale, size, commercial platform, industry-leading brands and solid acquisition strategies are likely to drive growth.
Recently, the company established a third business segment — BD Interventional. Notably, the recently-acquired C.R. Bard is integrated in this vertical. In this regard, management confirmed that BD is on track to become one of the biggest medical-technology devices company in the world following the buyout.
The acquisition is expected to generate benefits from complementary businesses and geographical expansion. This will also boost the company’s share price in the upcoming days.
Launches: Recently, BD announced the commercial availability of the CE-IVD marked PAXgene Blood circulating cell-free DNA (ccfDNA) tube within the European Economic Area and Switzerland (Western Europe).
The plastic tube, used for blood collection, was developed by PreAnalytiX GmbH, a joint venture between BD and Netherlands-based provider of Sample to Insight solutions, QIAGEN N.V. (QGEN - Free Report) .
PreAnalytiX was jointly formed by BD and QIAGEN to develop, manufacture and sell integrated and standardized systems for sample collection, stabilization and purification of RNA and DNA from human blood or bone marrow.
Per a study by Markets and Markets, the global molecular diagnostics market is projected to reach $10.12 billion by 2021 from $6.54 billion in 2016, at a CAGR of 9.1%.
Northward Estimate Revisions: The company’s Zacks Consensus Estimate of earnings of $10.94 for fiscal 2018 reflects year-over-year growth of 15.4%. Moreover, earnings are expected to register 15.2% growth in fiscal 2019.
For fiscal 2018, the Zacks Consensus Estimate for revenues is pegged at $15.9 billion, which reflects year-on-year improvement of 31.1%. Moreover, revenues are expected to witness 11.9% growth in fiscal 2019.
Guidance Strong: Including the accretion from C. R. Bard acquisition, BD expects fiscal 2018 revenues to increase in the range of 30-31% on a reported basis. However, revenues are expected to grow in the range of 4.5-5.5%.
Notably, revenues are likely to be affected by the change in the U.S. dispensing business model.
The company expects adjusted earnings per share in the range of $10.85-$11.00, up from $10.55-$10.65. The current range indicates growth of approximately 15-16% on a reported basis, or approximately 12% at cc.
Geographical Expansion: BD continues to focus on geographical expansion into overseas markets, in particular, emerging markets.
In the first quarter of fiscal 2018, international revenues grew 6.3% on a year-over-year basis. Growth was driven by Kiestra installations and strength in core microbiology within Diagnostic Systems as well as strong sales of clinical instruments within the Biosciences unit.
Strength in pre-filled flush devices in MPS and strong growth in Pharmaceutical Systems also contributed to international growth.
Developed markets revenues grew 2.5% in the first quarter, including an anticipated headwind from the U.S. dispensing change of 130 basis points (bps). Growth was driven by strong performance in Europe in Pharmaceutical Systems and Diagnostic Systems.
The combination of BD and Bard augments the company’s growth profile in developed markets. For fiscal 2018, BD estimates developed market growth of around 4% on a reported basis.
On an adjusted basis, the markets are expected to grow 4.5% year over year, excluding the estimated 50-bps impact from the U.S. dispensing change and the hurricane in Puerto Rico.
Other Key Picks
A few other top-ranked stocks in the broader medical sector are Bio-Rad Laboratories (BIO - Free Report) and PerkinElmer .
PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
5 Reasons Why You Should Add Becton, Dickinson (BDX) Now
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, is currently one of the top-performing stocks in the MedTech space.
Improvement in price performance and strong fundamentals indicate the stock’s bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio. The stock has a Zacks Rank #2 (Buy).
A long-term expected earnings growth rate of 12.8% is a positive for BD. Arguably, earnings growth is of utmost importance for determining a stock’s potential, as surging profit levels indicate solid prospects over the long haul.
Here we take a look at five other factors that are likely to provide BD with a competitive edge in MedTech in the quarters to come.
5 Factors Worth Considering
Share Price Appreciation: A glimpse of the company’s price trend reveals that shares have returned 22.2%, which compares favorably with the S&P 500 index’s rally of 6.7%. The current return is also greater than the industry’s gain of 11.6%.
The price surge can be attributed to strong investor optimism around the stock, considering that BD’s scale, size, commercial platform, industry-leading brands and solid acquisition strategies are likely to drive growth.
Becton, Dickinson and Company Price
Becton, Dickinson and Company Price | Becton, Dickinson and Company Quote
Recently, the company established a third business segment — BD Interventional. Notably, the recently-acquired C.R. Bard is integrated in this vertical. In this regard, management confirmed that BD is on track to become one of the biggest medical-technology devices company in the world following the buyout.
The acquisition is expected to generate benefits from complementary businesses and geographical expansion. This will also boost the company’s share price in the upcoming days.
Launches: Recently, BD announced the commercial availability of the CE-IVD marked PAXgene Blood circulating cell-free DNA (ccfDNA) tube within the European Economic Area and Switzerland (Western Europe).
The plastic tube, used for blood collection, was developed by PreAnalytiX GmbH, a joint venture between BD and Netherlands-based provider of Sample to Insight solutions, QIAGEN N.V. (QGEN - Free Report) .
PreAnalytiX was jointly formed by BD and QIAGEN to develop, manufacture and sell integrated and standardized systems for sample collection, stabilization and purification of RNA and DNA from human blood or bone marrow.
Per a study by Markets and Markets, the global molecular diagnostics market is projected to reach $10.12 billion by 2021 from $6.54 billion in 2016, at a CAGR of 9.1%.
Northward Estimate Revisions: The company’s Zacks Consensus Estimate of earnings of $10.94 for fiscal 2018 reflects year-over-year growth of 15.4%. Moreover, earnings are expected to register 15.2% growth in fiscal 2019.
For fiscal 2018, the Zacks Consensus Estimate for revenues is pegged at $15.9 billion, which reflects year-on-year improvement of 31.1%. Moreover, revenues are expected to witness 11.9% growth in fiscal 2019.
Becton, Dickinson and Company Price and Consensus
Becton, Dickinson and Company Price and Consensus | Becton, Dickinson and Company Quote
Guidance Strong: Including the accretion from C. R. Bard acquisition, BD expects fiscal 2018 revenues to increase in the range of 30-31% on a reported basis. However, revenues are expected to grow in the range of 4.5-5.5%.
Notably, revenues are likely to be affected by the change in the U.S. dispensing business model.
The company expects adjusted earnings per share in the range of $10.85-$11.00, up from $10.55-$10.65. The current range indicates growth of approximately 15-16% on a reported basis, or approximately 12% at cc.
Geographical Expansion: BD continues to focus on geographical expansion into overseas markets, in particular, emerging markets.
In the first quarter of fiscal 2018, international revenues grew 6.3% on a year-over-year basis. Growth was driven by Kiestra installations and strength in core microbiology within Diagnostic Systems as well as strong sales of clinical instruments within the Biosciences unit.
Strength in pre-filled flush devices in MPS and strong growth in Pharmaceutical Systems also contributed to international growth.
Developed markets revenues grew 2.5% in the first quarter, including an anticipated headwind from the U.S. dispensing change of 130 basis points (bps). Growth was driven by strong performance in Europe in Pharmaceutical Systems and Diagnostic Systems.
The combination of BD and Bard augments the company’s growth profile in developed markets. For fiscal 2018, BD estimates developed market growth of around 4% on a reported basis.
On an adjusted basis, the markets are expected to grow 4.5% year over year, excluding the estimated 50-bps impact from the U.S. dispensing change and the hurricane in Puerto Rico.
Other Key Picks
A few other top-ranked stocks in the broader medical sector are Bio-Rad Laboratories (BIO - Free Report) and PerkinElmer .
Bio-Rad Laboratories has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here. The company has a long-term expected earnings growth rate of 25%.
PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>