Key Drivers behind BDX’s Recent Stock Performance



BDX’s stock performance

Becton Dickinson (BDX), or BD, closed at $201.70 on July 27, 2017. BDX has a 50-day moving average of $196.80 and a 200-day moving average of $185.70. BDX stock fell ~0.59% when the company released its fiscal 2Q17 earnings on May 2, 2017.

Investor sentiment was weak due to the YoY (year-over-year) decline in the company’s reported sales due to the impact of its Respiratory Solutions business divestiture in October 2016. However, BD had exceeded analysts’ earnings as well as revenue estimates for the quarter.

On April 23, 2017, BD announced the acquisition of C.R. Bard. On that day, BDX’s stock price fell ~4%. Since the company’s fiscal 2Q17 earnings release on May 2, BDX stock has gained ~8.2%. It has returned ~16.1% over the last 12 months.

BDX stock outperformed the market, which is represented by the S&P 500 Index. The S&P 500 Index returned ~13.8% during the same period.

On July 27, 2017, BDX stock was trading ~25% above its 52-week low of $161.30 on December 7, 2016. The stock was trading ~2.4% below its 52-week high of $206.60 on July 25, 2017.

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Stock performances for BDX’s peers

On July 27, 2017, BD’s peers Abbott Laboratories (ABT), Boston Scientific (BSX), and Stryker (SYK) had generated returns of 16.1%, 13.1%, and 23.2%, respectively, over the last 12 months.

We can also compare BDX’s stock price performance with the performance of the iShares US Medical Devices ETF (IHI), the largest US medical device ETF. IHI has returned ~18% over the past year. BD has underperformed in comparison to the sector over the last 12 months.


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