Strong And Under The Radar: Becton Dickinson (BDX)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Becton Dickinson as such a stock due to the following factors:
- BDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $178.1 million.
- BDX has traded 597.836000000000012732925824820995330810546875 options contracts today.
- BDX is making at least a new 3-day high.
- BDX has a PE ratio of 46.
- BDX is mentioned 1.61 times per day on StockTwits.
- BDX has not yet been mentioned on StockTwits today.
- BDX is currently in the upper 20% of its 1-year range.
- BDX is in the upper 35% of its 20-day range.
- BDX is in the upper 45% of its 5-day range.
- BDX is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on BDX:
Becton, Dickinson and Company develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The stock currently has a dividend yield of 1.5%. BDX has a PE ratio of 46. Currently there are 9 analysts that rate Becton Dickinson a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Becton Dickinson has been 947,000 shares per day over the past 30 days. Becton Dickinson has a market cap of $36.0 billion and is part of the health care sector and health services industry. The stock has a beta of 1.01 and a short float of 1.3% with 2.69 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Becton Dickinson as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 49.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has significantly increased by 144.29% to $557.00 million when compared to the same quarter last year. In addition, BECTON DICKINSON & CO has also vastly surpassed the industry average cash flow growth rate of -16.79%.
- BECTON DICKINSON & CO has improved earnings per share by 44.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BECTON DICKINSON & CO reported lower earnings of $3.41 versus $6.00 in the prior year. This year, the market expects an improvement in earnings ($8.55 versus $3.41).
- The gross profit margin for BECTON DICKINSON & CO is rather high; currently it is at 57.53%. Regardless of BDX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.01% trails the industry average.
- You can view the full Becton Dickinson Ratings Report.
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