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Behind BD’s Recent Stock Performance

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BD’s stock performance

Becton, Dickinson, and Company (BDX), or BD, was trading at $184.13 on May 19, 2017, as compared to its 50-day moving average of $183.37 and its 200-day moving average of $176.94.

BD has been growing steadily over the years, driven by strong fundamentals, including a strong product portfolio, attractive growth strategies, and a robust business model. BD stock has seen tremendous growth over the years, though since its latest earnings results on May 2, 2017, the stock has fallen ~1.2%.

On May 19, 2017, BDX stock was trading 13.7% above its 52-week low of $161.29 on December 7, 2016, and 2.3% below its 52-week high of $187.69 on May 12, 2017. But BDX stock fell after its fiscal 2Q17 earnings announcement.

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On April 23, 2017, BD announced the acquisition of C.R. Bard at a more than 25% premium to Bard stock’s closing price on the previous day. BDX stock fell by around 4% following the acquisition announcement. (For details of the deal, read BD to Acquire C.R. Bard: A Big-Ticket Medical Device Acquisition.)

Peer stock performances

As of May 22, 2017, BDX peers Abbott Laboratories (ABT), Stryker (SYK), and Boston Scientific (BSX) have returned ~15%, ~18%, and ~21%, respectively, over the past year.

Over the past year, BDX stock has risen ~11.6%, but the stock has underperformed the market as represented by the S&P 500 Index over the same period. The Health Care Select Sector SPDR ETF (XLV) has returned 7.7% over the same period, and BDX accounts for ~1.5% of XLV’s total holdings.

BD stock performance can also be compared to the performance of the US medical device sector, which is represented by the iShares US Medical Devices ETF (IHI). BD has returned ~21.8% on a YTD (year-to-date) basis, as compared to the 6.4% and 8.8% YTD returns generated by SPY and IHI, respectively.

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