BDX Should I Buy
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Becton Dickinson and Co (BDX) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown some positive financial performance in its latest quarter, the technical indicators are weak, and the stock is currently in a downtrend. Additionally, the lack of strong positive catalysts and mixed analyst ratings suggest caution. Holding the stock or waiting for a more favorable entry point is recommended.
The MACD histogram is negative and expanding, indicating a bearish trend. RSI is at 27.822, which is close to oversold territory but not yet signaling a clear reversal. Moving averages are converging, showing no strong directional trend. The stock is trading below key support levels, with S1 at 173.031 and S2 at 161.545, suggesting further downside risk.
Hedge funds are significantly increasing their positions, with a 956.90% increase in buying activity over the last quarter.
The company has optimized its capital structure through cash tender offers for debt securities, which could reduce financing costs.
Insiders are selling heavily, with a 1103.67% increase in selling activity over the last month.
The company lowered its fiscal 2026 earnings guidance, causing a significant drop in stock price.
Increasing competition in the medical device sector is a concern.
In Q1 2026, the company reported revenue growth of 1.63% YoY to $5.25 billion. Net income increased by 26.07% YoY to $382 million, and EPS rose by 28.85% YoY to $1.34. Gross margin improved by 5.13% YoY to 45.91%. While these metrics show improvement, the lowered earnings guidance dampens the outlook.
Analyst ratings are mixed. Citi and Barclays have Buy/Overweight ratings with price targets of $198 and $202, respectively, reflecting optimism about the company's restructuring and growth potential. However, RBC Capital and Piper Sandler have lowered their price targets and maintain Neutral/Sector Perform ratings, citing concerns about growth recovery and flat organic growth. The average sentiment is cautious optimism, but not overwhelmingly positive.
