Becton Dickinson
BDX
$182.09
-0.71%
Becton, Dickinson and Co. (BDX) is a global medical technology company that develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products across four business units: Medical Essentials, Connected Care, Biopharma Systems, and Interventional. As a diversified player in the healthcare sector, BDX holds a strong competitive position with a broad portfolio that includes infusion pumps, syringes, and prefillable drug delivery systems, serving hospitals, clinics, and pharmaceutical manufacturers worldwide. The current investor narrative centers on the company's recent earnings beat and raised profit outlook, which has sparked optimism about operational execution, but lingering concerns about revenue growth and margin pressures keep the debate active. Additionally, the appointment of a new CFO and ongoing portfolio transformation efforts are drawing attention as BDX seeks to drive long-term value.…
BDX
Becton Dickinson
$182.09
Related headlines
Investment Opinion: Should I buy BDX Today?
Rating: Hold. BDX is a defensive healthcare stock with a consensus 'Buy' rating and an average target price of $194.42, implying 6% upside. The thesis is that the company's raised profit outlook and discounted valuation provide a margin of safety, but the recent revenue decline and margin volatility warrant caution.
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BDX 12-Month Price Forecast
The AI assessment is neutral with medium confidence. BDX's valuation is attractive, but the recent revenue decline and margin volatility create uncertainty. The raised profit outlook is a positive signal, but it needs to be backed by actual results. If revenue growth turns positive and margins stabilize, the stance would upgrade to bullish. Conversely, if the company misses its outlook or revenue decline worsens, the stance would downgrade to bearish. The low beta makes BDX a defensive play, but it also limits upside in a strong market.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Becton Dickinson's 12-month outlook, with a consensus price target around $194.42 and implied upside of +6.8% versus the current price.
Average Target
$194.42
0 analysts
Implied Upside
+6.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$170 - $225
Analyst target range
BDX is covered by 12 analysts, with a consensus recommendation of 'Buy' and a mean rating of 2.07 (where 1 is Strong Buy and 5 is Sell). The average target price is $194.42, implying an upside of approximately 6.0% from the current price of $183.40. The distribution includes 8 Buy ratings, 3 Hold ratings, and 1 Sell rating, indicating a generally bullish sentiment but with some caution. The target price range is $170.00 to $225.00, with the low target suggesting a downside of about 7.3% and the high target implying an upside of 22.7%. The wide spread reflects uncertainty about the company's growth trajectory and margin recovery. Recent ratings actions have been mostly neutral to positive, with Evercore ISI reiterating Outperform in July 2026, and Barclays maintaining Overweight, while Piper Sandler and TD Cowen have held Neutral/Hold stances. The high target likely assumes successful execution of the profit improvement plan and revenue growth acceleration, while the low target prices in continued margin pressure and competitive challenges.
Bulls vs Bears: BDX Investment Factors
BDX presents a mixed picture: strong recent momentum and a raised profit outlook are countered by a significant revenue decline and margin compression in Q2. The bull case rests on the potential for margin recovery and the stock's discounted valuation, while the bear case highlights the risk of continued operational weakness. Currently, the bull case has slightly stronger evidence given the positive guidance and technical breakout, but the key tension is whether the Q2 revenue decline is a temporary blip or a sign of structural issues. If revenue growth resumes and margins stabilize, the stock could re-rate higher; if not, the recent rally may fade.
Bullish
- Raised FY2026 profit outlook: BDX raised its full-year profit outlook after a Q2 beat, signaling operational strength and management confidence in margin recovery. This positive guidance revision is a key catalyst that has driven the stock's recent rally from $143 to $183.
- Strong recent momentum: The stock has surged 18.4% over the past month and 27.8% over the past three months, trading near its 52-week high of $187.35. This technical strength indicates renewed investor confidence and a potential breakout.
- Attractive forward valuation: With a forward PE of 13.78 and a PS ratio of 1.93, BDX trades at a significant discount to its historical PS range of 7-12 and the sector median of ~3.5. This suggests the market is pricing in a recovery, offering value if execution improves.
- Defensive business profile: With a beta of 0.258, BDX exhibits very low volatility relative to the market, making it a defensive healthcare holding. Its diversified portfolio across medical essentials, connected care, and biopharma systems provides stable demand.
Bearish
- Revenue decline in Q2: Q2 FY2026 revenue fell 10.6% YoY to $4.714 billion, and the company reported a net loss of $311 million. This sharp decline raises concerns about demand and competitive pressures, despite the raised profit outlook.
- Margin pressure and one-time charges: Operating margin collapsed to 1.99% in Q2 from 11.31% in Q1, driven by $599 million in other expenses. While some charges are one-time, the volatility highlights the fragility of profitability.
- Negative EPS and weak profitability: Q2 EPS was -$1.11, and the trailing PE of 25.2 is not meaningful due to negative earnings. The company's ROE is only 6.6%, indicating weak returns on equity compared to peers.
- High debt levels: Debt-to-equity ratio stands at 0.755, and interest expense of $149 million in Q2 weighs on earnings. High leverage increases financial risk, especially if revenue growth remains sluggish.
BDX Technical Analysis
BDX is currently in a strong recovery phase, with the stock trading at $183.40 as of August 14, 2026, near the top of its 52-week range of $127.59 to $187.35, representing approximately 97% of the range. The 1-year price change is -5.95%, indicating that despite the recent rally, the stock has not fully recovered from its earlier decline, but the current positioning near the highs suggests renewed momentum and investor confidence. The stock's beta of 0.258 indicates significantly lower volatility than the broader market, making it a defensive holding, but the recent price action shows a decisive upward trend that contrasts with the longer-term underperformance.
Beta
0.26
0.26x market volatility
Max Drawdown
-33.0%
Largest decline past year
52-Week Range
$128-$187
Price range past year
Annual Return
-7.1%
Cumulative gain past year
| Period | BDX Return | S&P 500 |
|---|---|---|
| 1m | +15.1% | +4.0% |
| 3m | +23.9% | +5.3% |
| 6m | -0.3% | +12.6% |
| 1y | -7.1% | +20.1% |
| ytd | -6.6% | +13.3% |
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BDX Fundamental Analysis
BDX's revenue trajectory has been mixed, with the most recent quarter (Q2 FY2026, ended March 31, 2026) showing revenue of $4.714 billion, a decline of 10.58% year-over-year, and a net loss of $311 million. However, the prior quarter (Q1 FY2026) reported revenue of $5.252 billion and net income of $382 million, indicating significant volatility. The company's gross margin has been relatively stable, at 45.69% in Q2 FY2026, compared to 44.63% in Q1 FY2026, but operating margin dropped sharply to 1.99% in Q2 due to one-time charges, versus 11.31% in Q1. The company's profitability is under pressure, with a negative EPS of -$1.11 in Q2, but the raised full-year profit outlook suggests management expects improvement.
Quarterly Revenue
$4.7B
2026-03
Revenue YoY Growth
-10.6%
YoY Comparison
Gross Margin
45.7%
Latest Quarter
Free Cash Flow
$3.1B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BDX Overvalued?
Given the negative net income in the most recent quarter, the trailing PE ratio is not meaningful, so I selected the PS ratio as the primary valuation metric. BDX's trailing PS ratio is 1.93, while the forward PE is 13.78, indicating that the market expects earnings to recover strongly. The EV/Sales ratio is 2.92, and the EV/EBITDA is 12.21, which are reasonable for a medical device company. Compared to the industry average, BDX's PS ratio of 1.93 is below the sector median of approximately 3.5, suggesting a discount, but this may reflect the company's lower growth and margin profile. Historically, BDX's PS ratio has ranged from about 7 to 12 over the past few years, so the current 1.93 is near the bottom of its historical range, indicating a potential value opportunity or a reflection of deteriorating fundamentals.
PE
25.2x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 17x~55x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant: BDX's Q2 FY2026 net loss of $311 million and negative EPS of -$1.11 highlight earnings volatility, while the operating margin fell to 1.99% from 11.31% in the prior quarter. The company carries a debt-to-equity ratio of 0.755, and interest expenses of $149 million in Q2 reduce net income. Free cash flow of $3.14 billion TTM provides some cushion, but the high payout ratio of 71.3% for dividends could strain cash flows if earnings remain depressed.