Is There More Room For Growth In Becton Dickinson Stock?

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Becton Dickinson Stock (NYSE: BDX
) has declined 7% this year, outperforming the broader S&P500 index, which is down 17%. However, over the long term, BDX stock is down 14% from levels seen in late 2019, versus the S&P 500 index, up nearly 22%.

This 14% decline for BDX stock since the end of 2019 can be primarily attributed to 1. The company’s P/S ratio fell 17% from 4.3x in 2019 to 3.6x trailing revenue, 2. A 5% increase in its total shares outstanding to 287 million, partially offset by 3. revenue of becton dickinson That’s an increase of 9% over the past twelve months to $18.9 billion, compared to $17.3 billion in 2019. Higher revenue and shares outstanding meant that its earnings per share rose just 4% to $65.67, compared to $62.92 in 2019.

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Becton Dickinson’s revenue growth in recent days has been helped by increased demand for its COVID-19 diagnostic tests and its medical delivery solutions and pharmaceuticals systems, primarily prefilled devices. Earlier this year, the company completed the spin-off of its diabetes business, which is now listed as a separate entity — Embacta (NASDAQ)
: EMBC) – on the Nasdaq Stock Exchange. The decline in revenue in FY22 can be attributed to lower diagnostics sales, given the decline in demand for Covid-19 tests and foreign exchange headwind.

Not only has the company seen its revenue grow in recent years, but its operating margin has also now increased to 16.2%, compared to 13.9% in 2019. Our Becton Dickinson Operating Income Comparison There are more details in the dashboard.

BDX stock soared 4% in a week after an Illinois jury found that a rival sterilization service provider — Sotera Health — was not liable for causing a woman’s cancer. Becton Dickinson is also facing lawsuits alleging that its sterilization facility’s EtO emissions have been linked to serious and potentially life-threatening injuries. This development went well, with investors expecting similar results for Becton Dickinson.

Despite BDX stock’s poor performance in recent years, we believe it has little room for growth. At its current level of around $235, it’s trading at about 3.6x its expected earnings per share of $65.35, compared to its last four-year average of 3.9x, leaving only a tiny bit of room for growth. .

While BDX stock looks like it has little room for growth, it’s useful to look at how Fellows of Becton Dickinson Hire on metrics that matter. You’ll find other valuable comparisons for companies from different industries here peer comparison,

In addition, the COVID-19 crisis and recent market volatility have created several pricing anomalies that may provide attractive trading opportunities. For example, you’d be surprised how counter-intuitive stock valuations are. Novanta v. Abbott,

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