Becton Dickinson Scores High on Growth Investor Model

According to a recent report, Becton Dickinson (BDX) ranks high using the Growth Investor strategy, reflecting solid underlying fundamentals and valuation. Despite some red flags in earnings growth persistence and debt levels, the overall outlook remains optimistic for investors.

Date: 09-11-2024

AI Rating: 6

The report evaluates Becton Dickinson and Co. (BDX) using the Growth Investor model based on Martin Zweig's strategy. With an overall rating of 69%, the stock exhibits several positive attributes.

Key highlights from the analysis include:

P/E Ratio: Pass - This suggests that BDX is reasonably valued relative to its earnings.
Revenue Growth in Relation to EPS Growth: Fail - This indicates that revenue growth is not translating effectively into earnings growth.
Sales Growth Rate: Pass - Healthy sales growth can be indicative of a strong demand for BDX's products.
Current Quarter Earnings: Pass - Positive earnings in the current quarter suggest financial strength.
Quarterly Earnings One Year Ago: Pass - This comparison shows stable performance year over year.
Positive Earnings Growth Rate for Current Quarter: Pass - Indicates improving earnings performance.
EPS Growth for Current Quarter Must Be Greater Than Prior 3 Quarters: Pass - This reflects an upward trend in earnings per share.
EPS Growth for Current Quarter Must Be Greater Than the Historical Growth Rate: Pass - Again, indicating strong current performance.
Earnings Persistence: Fail - This raises concerns about the sustainability of earnings growth going forward.
Long-term EPS Growth: Pass - This is a positive indicator for long-term investors.
Total Debt/Equity Ratio: Fail - High debt levels could threaten financial stability.
Insider Transactions: Pass - Insider buying often reflects confidence in the company’s future prospects by its leadership.

Ultimately, while the BDX stock presents many positive indicators such as sales growth, earnings performance, and reasonable valuation, the fails in earnings persistence and debt levels could pose risks that might impact stock price in the future.

Stocks: BDX