On Feb 5, Zacks Investment Research upgraded
Becton, Dickinson and Company
) to a Zacks Rank #2 (Buy).
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Why the Upgrade?
Becton, Dickinson's adjusted earnings per share of $1.42 for the
first quarter of fiscal 2014 (ended Dec 31, 2013), reported on
Feb 4, surpassed the Zacks Consensus Estimate of $1.29 per share
Becton, Dickinson recorded healthy growth owing to favorable
timing of orders from both its BD Medical and BD Diagnostics
segments. Revenues in the reported quarter went up 6.1% to $2,015
million, also exceeding the Zacks Consensus Estimate of $1,979
Though the company experienced stabilization in the U.S. market,
it witnessed robust growth in emerging markets accompanied with
improvements in Europe.
Based on its progress, Becton, Dickinson continues to expect
revenue growth in the range of 4% to 5%, both in reported and
constant currency. On the other hand, it anticipates adjusted
earnings per share to range between $6.19 and $6.22 for the year
(compared with the prior expectations of $6.16 to $6.22),
reflecting a year-over-year growth of 6.5-7% over fiscal 2013.
The current Zacks Consensus Estimate of $6.22 lies within the
Becton, Dickinson has witnessed a flurry of upward estimate
revisions in the past 30 days. Twelve upward revisions have been
observed over the same time span for fiscal 2014 with no reverse
The company's prime focus is to continue with its long-term
strategy of innovation in order to enhance growth. Becton,
Dickinson seeks to generate higher revenues by offering new
complete solutions to its customers, simultaneously expanding its
geographic reach to gain additional customers.
We believe that the decision to invest in its long term strategy
of innovation will give Becton, Dickinson a solid platform for
future growth. The strong future growth potential at Becton,
Dickinson reinforces investors' confidence in the stock.
Other Stocks to Consider
Investors interested in the medical supplies industry can also
look at stocks like
Align Technology Inc.
CR Bard Inc.
Cardinal Health, Inc.
). All these stocks carry the same Zacks Rank as Becton,