Is Becton, Dickinson and Company Stock Outperforming the Dow?

Valued at a market cap of $50.3 billion, Becton, Dickinson and Company (BDX) is a global medical technology leader based in Franklin Lakes, New Jersey. It develops, manufactures, and sells a comprehensive range of medical supplies, devices, and interventional solutions. 

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and BDX fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the medical instruments & supplies industry. By prioritizing innovation in high-growth fields such as biologic drug delivery, automated medication management, and advanced patient monitoring, the company continues to advance the world of health by improving clinical outcomes and operational efficiency for providers and patients.

This healthcare giant is currently trading 5.8% below its 52-week high of $187.35, reached on Feb. 24. Shares of BDX have rallied 15.8% over the past three months, considerably outperforming the Dow Jones Industrial Average’s ($DOWI) 3.3% rise during the same time frame.

Moreover, on a YTD basis, shares of BDX are up 15.7%, compared to DOWI’s 1.9% rise. However, over the past 52 weeks, BDX has gained marginally, lagging behind DOWI’s 13.3% uptick. 

To confirm its bullish trend, BDX has been trading above its 200-day moving average since late November, with slight fluctuations, and has remained above its 50-day moving average since mid-November. 

On Feb. 9, shares of BDX plunged 1.3% despite reporting better-than-expected Q4 results. The company’s revenue increased 1.6% year-over-year to $5.3 billion, surpassing consensus estimates. However, its management remains cautious about persistent macroeconomic and regulatory headwinds, especially from China and vaccine demand, which might have made investors jittery. Additionally, its adjusted EPS of $2.91 handily topped analyst expectations of $2.82. 

BDX has notably outperformed its rival, Intuitive Surgical, Inc. (ISRG), which declined 10.7% over the past 52 weeks and 11.1% on a YTD basis. 

Given BDX’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 14 analysts covering it, and the mean price target of $194.08 suggests a 10% premium to its current price levels.