The long-term picture of Bard is nothing less than impressive as can be seen in the chart, above. Prices have corrected along the way in this multi-year markup, but the dips have been shallow and the On-Balance-Volume line has displayed a smooth uptrend, suggesting longs continue to hold their positions.
The short-term picture is also encouraging. See chart, below.
Holders of BCR endured an eight-month consolidation phase from November through early July, as BCR marked time around the $170 level. Prices broke out to the upside in July and August, ignoring the weakness in the broader market. The On-Balance-Volume (OBV) line recently made a new high and should be foreshadowing a breakout to new highs for BCR.
Projecting the height of the recent consolidation (from $200 to $180, or $20) to hopefully an eventual breakout at $200, we get $220 as our next upside target for BCR.
Separately, TheStreet Ratings team rates BARD (C.R.) INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate BARD (C.R.) INC (BCR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 54.2% when compared to the same quarter one year prior, rising from -$119.40 million to -$54.70 million.
- The revenue growth significantly trails the industry average of 34.8%. Since the same quarter one year prior, revenues slightly increased by 4.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BARD (C.R.) INC reported significant earnings per share improvement 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, BARD (C.R.) INC reported lower earnings of $3.68 versus $8.48 in the prior year. This year, the market expects an improvement in earnings ($9.07 versus $3.68).
- Powered by its strong earnings growth of 53.45% and other important driving factors, this stock has surged by 33.74% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market on the basis of return on equity, BARD (C.R.) INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: BCR