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Bear of the Day: Becton, Dickenson and Co (BDX)

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Not all stocks are enjoying the run of the small caps or chip stops or whatever your favorite niche of the market is. Some of them are struggling to keep pace with the pack. Others are actively heading lower. Today’s Bear of the Day is a stock that has pulled back from recent highs and is trending lower. The more troubling part for long-term investors is that earnings estimates are also coming down.

Today’s Bear of the Day is Becton, Dickinson and Company ((BDX - Free Report) ). Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company operates in three segments: BD Medical, BD Life Sciences, and BD Interventional.

Becton, Dickinson and Company is a Zacks Rank #5 (Strong Sell) in the Medical – Dental Supplies industry which ranks in the Bottom 21% of our Zacks Industry Rank. The reason for the unfavorable rank is that a recent earnings report has caused several firms around Wall Street to cut their earnings estimates for the company. Over the last thirty days, eleven analysts have cut their current year number while six have followed suit for next year.

The result has slashed our Zacks Consensus Estimate for the current year and next year. The current year number is off from $13.53 to $12.84 while next year’s number is down from $15.03 to $14.19. Those numbers are still both good for year-over-year growth though. Current year EPS growth is estimated to come in at 5.16% with next year at 10.58. That’s on revenue growth of 4.25% this year and 5.8% next year.

There are several names within the Medical – Dental Supplies industry which are Zacks Rank #3 (Hold) stocks. These include Align Technology ((ALGN - Free Report) ) and Labcorp ((LH - Free Report) ).

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Labcorp (LH) - free report >>

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