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Here's Why You Should Retain BD (BDX) to Your Portfolio
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Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, is well-poised for growth in the coming quarters, courtesy of its series of product launches over the past few months. The optimism led by a solid first-quarter fiscal 2024 performance and a few strategic deals are expected to contribute further. However, macroeconomic concerns and stiff competition persist.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 3.5% compared with the 18.1% rise of the industry and 32.9% growth of the S&P 500.
The renowned medical technology company has a market capitalization of $69.19 billion. It projects 9.4% growth for the next five years and expects to maintain its strong performance. BD’s earnings surpassed estimates in three of the trailing four quarters and broke even once, with the average surprise being 4.6%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strategic Deals: BD has inked a few strategic agreements for its products over the past few months, raising our optimism. Last month, it announced a strategic partnership with Camtech Health to advance cervical cancer screening by offering the first-ever option for women in Singapore to self-collect a sample privately in their homes.
In January, BD announced a strategic collaboration agreement with Techcyte to offer an artificial intelligence-based algorithm that guides cytologists and pathologists to efficiently and effectively identify evidence of cervical cancer and pre-cancer using whole-slide imaging.
Product Launches: We are upbeat about BD’s slew of product launches in recent times. On the first quarter of fiscal 2024 earnings call in February, BD’s management confirmed that its PureWick program is progressing well. The company also remains on track to launch its next-generation Female External Catheter later in fiscal 2024.
On the same call, management confirmed that the new BD MiniDraw Capillary Blood Collection System and the NextGen PureWick are on track to launch later in fiscal 2024.
Strong Q1 Results: BD’s solid first-quarter fiscal 2024 results buoy our optimism. The company registered solid top-line results, along with improvements in organic revenues. Robust performances by its Medical and Interventional segments and both geographic regions were also recorded. Strength in most of BD’s segment’s business units during the reported quarter was also seen.
Downsides
Macroeconomic Concerns: Global economic challenges, including rising inflation and volatile capital markets, among others, pose risks to the demand and pricing of BD’s products and services. These conditions can disrupt its supply chain, impact production, and increase its borrowing costs, affecting its business.
Stiff Competition: BD operates in an increasingly complex and challenging medical technology marketplace. Although technological advances and scientific discoveries have accelerated the pace of change in medical technology, the regulatory environment of medical products is becoming more complex and vigorous. Acquisitions and collaborations by and among companies seeking a competitive advantage also affect the competitive environment.
Estimate Trend
BD is witnessing a positive estimate revision trend for fiscal 2024. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.8% north to $12.94.
The Zacks Consensus Estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $5.02 billion, suggesting a 4.2% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 80.9% compared with the industry’s 26.9% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 64.7% compared with the industry’s 18.1% rise in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 60.2% compared with the industry’s 7.7% rise in the past year.
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Here's Why You Should Retain BD (BDX) to Your Portfolio
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, is well-poised for growth in the coming quarters, courtesy of its series of product launches over the past few months. The optimism led by a solid first-quarter fiscal 2024 performance and a few strategic deals are expected to contribute further. However, macroeconomic concerns and stiff competition persist.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 3.5% compared with the 18.1% rise of the industry and 32.9% growth of the S&P 500.
The renowned medical technology company has a market capitalization of $69.19 billion. It projects 9.4% growth for the next five years and expects to maintain its strong performance. BD’s earnings surpassed estimates in three of the trailing four quarters and broke even once, with the average surprise being 4.6%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Strategic Deals: BD has inked a few strategic agreements for its products over the past few months, raising our optimism. Last month, it announced a strategic partnership with Camtech Health to advance cervical cancer screening by offering the first-ever option for women in Singapore to self-collect a sample privately in their homes.
In January, BD announced a strategic collaboration agreement with Techcyte to offer an artificial intelligence-based algorithm that guides cytologists and pathologists to efficiently and effectively identify evidence of cervical cancer and pre-cancer using whole-slide imaging.
Product Launches: We are upbeat about BD’s slew of product launches in recent times. On the first quarter of fiscal 2024 earnings call in February, BD’s management confirmed that its PureWick program is progressing well. The company also remains on track to launch its next-generation Female External Catheter later in fiscal 2024.
On the same call, management confirmed that the new BD MiniDraw Capillary Blood Collection System and the NextGen PureWick are on track to launch later in fiscal 2024.
Strong Q1 Results: BD’s solid first-quarter fiscal 2024 results buoy our optimism. The company registered solid top-line results, along with improvements in organic revenues. Robust performances by its Medical and Interventional segments and both geographic regions were also recorded. Strength in most of BD’s segment’s business units during the reported quarter was also seen.
Downsides
Macroeconomic Concerns: Global economic challenges, including rising inflation and volatile capital markets, among others, pose risks to the demand and pricing of BD’s products and services. These conditions can disrupt its supply chain, impact production, and increase its borrowing costs, affecting its business.
Stiff Competition: BD operates in an increasingly complex and challenging medical technology marketplace. Although technological advances and scientific discoveries have accelerated the pace of change in medical technology, the regulatory environment of medical products is becoming more complex and vigorous. Acquisitions and collaborations by and among companies seeking a competitive advantage also affect the competitive environment.
Estimate Trend
BD is witnessing a positive estimate revision trend for fiscal 2024. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.8% north to $12.94.
The Zacks Consensus Estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $5.02 billion, suggesting a 4.2% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 80.9% compared with the industry’s 26.9% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 64.7% compared with the industry’s 18.1% rise in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 60.2% compared with the industry’s 7.7% rise in the past year.