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Here's Why You Should Add BD (BDX) Stock in Your Portfolio
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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, has been gaining from its series of product launches over the past few months. The optimism led by a solid second-quarter fiscal 2023 performance and a few regulatory approvals are expected to contribute further. Forex woes and stiff competition persist.
Over the past year, this Zacks Rank #2 (Buy) stock has gained 7.2% compared with the 19.4% rise of the industry and 14.9% growth of the S&P 500.
The renowned medical technology company has a market capitalization of $72.89 billion. It projects 10.1% growth for the next five years and expects to maintain its strong performance. BD has delivered an earnings surprise of 5.8% for the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Regulatory Approvals: BD has been progressing impressively on the regulatory front, raising our optimism. In May, BD received the FDA’s 510(k) clearance for the new BD Kiestra Methicillin-resistant Staphylococcus aureus imaging application.
At the time of its second-quarter fiscal 2023 earnings release in May, BD confirmed that its BD Life Sciences segment’s Integrated Diagnostic Solutions business unit filed for US regulatory clearance of BD MiniDraw.
Product Launches: We are upbeat about BD’s slew of product launches in recent times. In June, the company announced the worldwide commercial launch of a new automated instrument, BD FACSDuet Premium Sample Preparation System.
In May, BD announced expanded customer availability of an all-in-one prefilled flush syringe with an integrated disinfection unit designed to reinforce compliance with infection prevention guidelines and simplify nursing workflow.
Strong Q2 Results: BD’s solid second-quarter fiscal 2023 results buoy our optimism. The company registered solid top-line and bottom-line results, along with improvements in the overall base revenues. Robust performances by the majority of its segments and both geographic regions were seen. Strength in BD’s segment’s business units during the reported quarter was also witnessed. The expansion of both margins bodes well.
Downsides
Stiff Competition: BD, being a global company, faces significant competition from a wide range of companies, including large medical device companies with multiple product lines. Some of these companies may have greater resources and may be more specialized than BD with respect to particular markets or product lines. Non-traditional entrants, such as technology companies, are also entering the healthcare industry with resources.
Forex Woes: BD generates a substantial amount of its revenues from international operations. The revenues BD report with respect to its operations outside the United States may be adversely affected by fluctuations in foreign currency exchange rates. BD cannot predict with any certainty changes in foreign currency exchange rates or the degree to which it can mitigate such risks.
Estimate Trend
BD is witnessing a positive estimate revision trend for fiscal 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.4% north to $12.19.
The Zacks Consensus Estimate for the company’s third-quarter fiscal 2023 revenues is pegged at $4.83 billion, suggesting a 3.9% improvement from the year-ago quarter’s reported number.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Abbott Laboratories (ABT - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Abbott has lost 2.7% compared with the industry’s 22.8% decline over the past year.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.
HealthEquity has gained 4.3% against the industry’s 15.7% decline over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 39.4% against the industry’s 22.8% decline over the past year.
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Here's Why You Should Add BD (BDX) Stock in Your Portfolio
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, has been gaining from its series of product launches over the past few months. The optimism led by a solid second-quarter fiscal 2023 performance and a few regulatory approvals are expected to contribute further. Forex woes and stiff competition persist.
Over the past year, this Zacks Rank #2 (Buy) stock has gained 7.2% compared with the 19.4% rise of the industry and 14.9% growth of the S&P 500.
The renowned medical technology company has a market capitalization of $72.89 billion. It projects 10.1% growth for the next five years and expects to maintain its strong performance. BD has delivered an earnings surprise of 5.8% for the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Regulatory Approvals: BD has been progressing impressively on the regulatory front, raising our optimism. In May, BD received the FDA’s 510(k) clearance for the new BD Kiestra Methicillin-resistant Staphylococcus aureus imaging application.
At the time of its second-quarter fiscal 2023 earnings release in May, BD confirmed that its BD Life Sciences segment’s Integrated Diagnostic Solutions business unit filed for US regulatory clearance of BD MiniDraw.
Product Launches: We are upbeat about BD’s slew of product launches in recent times. In June, the company announced the worldwide commercial launch of a new automated instrument, BD FACSDuet Premium Sample Preparation System.
In May, BD announced expanded customer availability of an all-in-one prefilled flush syringe with an integrated disinfection unit designed to reinforce compliance with infection prevention guidelines and simplify nursing workflow.
Strong Q2 Results: BD’s solid second-quarter fiscal 2023 results buoy our optimism. The company registered solid top-line and bottom-line results, along with improvements in the overall base revenues. Robust performances by the majority of its segments and both geographic regions were seen. Strength in BD’s segment’s business units during the reported quarter was also witnessed. The expansion of both margins bodes well.
Downsides
Stiff Competition: BD, being a global company, faces significant competition from a wide range of companies, including large medical device companies with multiple product lines. Some of these companies may have greater resources and may be more specialized than BD with respect to particular markets or product lines. Non-traditional entrants, such as technology companies, are also entering the healthcare industry with resources.
Forex Woes: BD generates a substantial amount of its revenues from international operations. The revenues BD report with respect to its operations outside the United States may be adversely affected by fluctuations in foreign currency exchange rates. BD cannot predict with any certainty changes in foreign currency exchange rates or the degree to which it can mitigate such risks.
Estimate Trend
BD is witnessing a positive estimate revision trend for fiscal 2023. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.4% north to $12.19.
The Zacks Consensus Estimate for the company’s third-quarter fiscal 2023 revenues is pegged at $4.83 billion, suggesting a 3.9% improvement from the year-ago quarter’s reported number.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Abbott Laboratories (ABT - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Abbott, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, with an average of 19.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has lost 2.7% compared with the industry’s 22.8% decline over the past year.
HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.
HealthEquity has gained 4.3% against the industry’s 15.7% decline over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 39.4% against the industry’s 22.8% decline over the past year.