How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Becton Dickinson (NYSE:BDX) ten years ago? It may not have been easy to hold on to BDX for all that time, but if you did, how much would your investment be worth today?
Becton Dickinson's Business In-Depth
With that in mind, let's take a look at Becton Dickinson's main business drivers.
Based in Franklin Lakes, NJ, Becton, Dickinson and Company, commonly known as BD, is a medical technology company engaged principally in the development, manufacture and sale of medical devices, instrument systems and reagents.
In fiscal 2021, BD’s revenues rose 18.3% to $20.25 billion.
Earlier, BD’s operations consisted of three business segments: BD Medical, BD Diagnostics and BD Biosciences. However, the company’s organizational structure was realigned to form two principal business segments: BD Medical, BD Life Sciences and BD Interventional.
BD Medical (25.4% of fiscal 2021 revenues): BD Medical’s major product lines include needles, syringes and intravenous catheters for medication delivery; prefilled IV flush syringes; syringes and pen needles for diabetes care; refillable drug delivery systems; regional anesthesia needles and trays; sharps disposal containers; closed-system transfer devices; and generic prefilled injectables.
BD Life Sciences (14.7% of fiscal 2021 revenues): BD Diagnostics provides products for the safe collection and transport of diagnostics specimens, as well as instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections and cancer.
BD Biosciences produces research and clinical tools that facilitate the study of cells to gain a better understanding of normal and disease processes.
With the acquisition of C.R. Bard, BD added a new segment — BD Interventional (14.1% of fiscal 2021 revenues) — in which C.R. Bard has been integrated.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Becton Dickinson ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2012 would be worth $3,386.18, or a 238.62% gain, as of January 24, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 234.35% and gold's return of 5.60% over the same time frame.
Analysts are forecasting more upside for BDX too.
BD’s robust segmental performance and solid geographical revenues in fourth-quarter fiscal 2021 are encouraging. Product launches by the company are impressive. The FDA’s Emergency Use Authorization for BD Veritor At-Home COVID-19 Test and the 510(k) clearance received for expanded indications for Rotarex Rotational Excisional Atherectomy System raise optimism. BD’s slew of tie-ups also augurs well. Robust uptake of the company’s products is an added advantage. A strong solvency position is an added plus. BD’s results in the fiscal fourth-quarter were better than expected. Yet, the expected fall in international infusion pump sales and lower COVID-19 diagnostic testing revenues are discouraging. Contraction of both margins does not bode well either. Over the past six months, the company has underperformed its industry.
Over the past four weeks, shares have rallied 6.32%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Becton, Dickinson and Company (BDX): Free Stock Analysis Report
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