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Becton, Dickinson Launches BD Resolve Early Access Program

Leading global medical technology company, Becton, Dickinson and CompanyBDX , popularly known as BD, recently announced an early access program for the BD Resolve Single-Cell Gene Expression platform. The platform is on track for a full fledged commercial launch by early fall 2017.

Notably, BD has more than 30 years of experience in single-cell analysis. However, the exclusivity of this gene expression platform lies in its flexibility to capture and analyze individual cells in a broad range of sizes and types.

Meanwhile, BD recently reported first-quarter fiscal 2017 results, beating the Zacks Consensus Estimate on both the lines. Also, earnings rose 18.9% on a year-over-year basis. The company has also provided a positive outlook wherein revenues are anticipated to increase approximately 4.5% to 5.0% for fiscal 2017.

Getting back to the latest development, the platform analyzes the whole transcriptome and targeted gene specific panels. Additionally, when connected with the company's flagship BD FACSMelody, the platform successfully removes unwanted cells, inducing data accuracy and cost reduction.

Stock Performance

Over the last three months, the price performance of BD has been encouraging. The stock added 6.8%, comparing favorably with the Zacks classified Medical/Dental Supplies sub-industry's gain of 4.5%. Also, the current level compares favorably with the S&P 500's return of 5.6% over the same time frame. Added to this, a long-term expected earnings growth rate of 9.94% instills confidence in investors.

Despite the bullish price trend, estimate revision for the stock has been quite disappointing. The full year has seen ten estimates move south over the last two months, compared with no movement in the opposite direction. As a result, it dropped a nominal 1% to $9.42 over the same time frame.

These mixed sentiments justify the stock's Zacks Rank #3 (Hold).

Our Take

We are highly upbeat about the development taking the global gene expression analysis market into consideration. The global gene expression analysis market is projected to reach a worth of $5.30 billion by 2020, multiplying at a CAGR of 9.3% (Markets And Markets).

Furthermore, BD's focus on product launches is a significant catalyst in our view. Additionally, its expansion plans, especially in the emerging overseas markets, and the acquisition-driven strategy hold considerable promise.

On the flipside, lower demand for healthcare products, intensifying competition, significant exposure to foreign exchange volatility and higher debt levels pose major headwinds.

Stocks to Consider

Better-ranked stocks in the broader medical sector include Addus Glaukos Corporation GKOS , Avinger, Inc. AVGR and Fluidigm Corporation FLDM . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 196.8%.

Avinger projects sales growth of 2.3% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.

Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock has added 1.7% over the last three months.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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