Dj Becton Dickinson & Corporate Stock Underperforms Wednesday When Compared To Competitors

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Becton, Dickinson and Company (BDX). BDX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.73 right now. For comparison, its industry sports an average P/E of 17.80. Over the past 52 weeks, BDX's Forward P/E has been as high as 18.78 and as low as 15.73, with a median of 17.16.

We also note that BDX holds a PEG ratio of 1.69. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BDX's industry currently sports an average PEG of 1.88. Over the last 12 months, BDX's PEG has been as high as 1.98 and as low as 1.69, with a median of 1.86.

Value investors will likely look at more than just these metrics, but the above data helps show that Becton, Dickinson and Company is likely undervalued currently. And when considering the strength of its earnings outlook, BDX sticks out at as one of the market's strongest value stocks.

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The Saudi entity of BD (Becton, Dickinson and Company) , a leading global medical technology company, has signed a strategic partnership with the Saudi Patient Safety Center (SPSC) to improve patient safety and healthcare quality across the Kingdom.

The partnership, formalized through a Memorandum of Understanding (MoU) that was signed on the sidelines of the Global Health Exhibition in Saudi Arabia, reinforces a shared commitment from both organizations to support Saudi Vision 2030 by tackling critical healthcare challenges such as reducing medication errors, managing sepsis, and combating Healthcare-associated Infections (HAIs) and Antimicrobial Resistance (AMR). These efforts align with BD Signature Programmes™, which focus on enhancing patient safety, healthcare worker safety, and driving efficiency.

Key areas of focus will include medication safety to achieve zero harm from medication errors, prevention of HAIs such as Central Line-associated Bloodstream Infections (CLABSI), Catheter-associated Urinary Tract Infections (CAUTI), and Surgical Site Infections (SSI). Additionally, the collaboration will emphasize antimicrobial stewardship as well as improve sustainability and workflow efficiency across healthcare systems.

“This collaboration marks a significant step forward in our journey to elevate healthcare safety across the Kingdom,” said Dr. Ali Asery, Director General of the Saudi Patient Safety Center. “By combining our strategic vision with BD’s global expertise and innovative technologies, we aim to foster a culture of continuous improvement in patient and healthcare worker safety. Together, we will set new benchmarks for excellence in alignment with Saudi Vision 2030, and empower healthcare professionals with the tools and knowledge necessary to drive safer, more effective care delivery for our nation."

The partnership will involve a series of workshops, roundtable discussions, clinical training sessions and exchange of best practices in more than 500 hospitals across the country, as well as the development and sharing of clinical guidelines inspired by international recommendations. The partnership will also focus on improving data collection in full alignment of the Personal Data Protection Law (PDPL) and conducting surveys to gather insights from healthcare professionals across Saudi Arabia. Both organizations will also collaborate on the development of a whitepaper titled 'Medication Safety 2030,' advocating for a national strategy to achieve zero harm from medication errors.

Omar Malabarey, Country General Manager BD Saudi Arabia, added, “Our partnership with the Saudi Patient Safety Center marks a significant step forward in our shared commitment to shaping the future of healthcare in Saudi Arabia. At BD, we are deeply invested in transforming patient safety through innovation, and this collaboration enables us to bring world-class expertise and technologies to support the Kingdom's healthcare goals. By working together, we aim to reduce risks, enhance the quality of care, and foster a culture of safety and continuous improvement, in line with Vision 2030’s aspirations for a sustainable and resilient healthcare system.”

About BD:

BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its more than 70,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com or connect with us on LinkedIn at www.linkedin.com/company/bd1/, X (formerly Twitter) @BDandCo or Instagram @becton_dickinson.

For more information (Press only):

Rania.Raad@bd.com

BD@proglobal.ae

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On Monday, Hologic HOLX released its fiscal 2024 fourth-quarter financial report after the closing bell, with revenues slightly surpassing the consensus mark. The bottom line fell short of estimates by just 1% after three consecutive quarters of positive surprises. However, both metrics improved on a year-over-year basis. Closing the year with a solid operating margin, Hologic emerged as a top-tier performer within its peer group, with room for improvement in fiscal 2025.

Shares of the Marlborough, MA-based women’s health company have dropped 3.7% since the earnings announcement on Nov. 4, finishing at $79.29 yesterday. Apart from missing the analysts’ earnings forecast, the decline in the stock price can be attributed to the ongoing headwinds in the company’s Skeletal Health division and a cautious outlook for the fiscal 2025 first quarter.

Highlights From Hologic’s Q4 Results

Q4 marked Hologic’s second quarter in a row of top-line growth, signaling a positive shift from the COVID-19-driven declines. Revenues jumped 4.5% to $987.9 million, and non-GAAP earnings per share climbed 13.5% to $1.01. The company continues to gain from a diverse set of durable drivers placed strategically across its businesses.

Core Franchise Performance: The Molecular Diagnostics segment posted 13.2% growth, excluding COVID-19, powered by the ongoing adoption of the BV/CV/TV assay on the company’s high throughput Panther system, strong contributions from Biotheranostics and the respiratory COVID/Flu A/B/RSV assay. In line with the guidance, the cytology and perinatal business posted a modest 0.7% increase.

In Breast Health, the 5.4% organic growth in the quarter was largely from increased breast imaging service revenues, contributions from the gantry business and interventional products. The GYN Surgical arm grew 5.4%, led by MyoSure and the complementary Fluent fluid management system. The international surgical business delivered a broad-based performance driven by expanding access to technologies in new markets.

Profitability Scenario: Hologic’s fiscal fourth-quarter performance also displayed strong operational resilience amid challenges. The non-GAAP gross margin improved 110 basis points year over year to 61.5%, driven by broad-based domestic revenue growth. The company delivered a non-GAAP operating margin of 30%, a modest increase over the prior year. Hologic noted that, excluding the impact of Endomagnetics and currency, operating expenses were nearly flat compared to the prior year. Non-GAAP net income came to $237.5 million, improving 8.3% year over year.

M&A Activity, Share Buybacks: Hologic closed fiscal 2024 with $2.2 billion in cash and cash equivalents and $1.29 billion in operational cash flow. In October 2024, it signed a definitive agreement to acquire Gynesonics, the developer of the Sonata System, for diagnostic intrauterine imaging and transcervical treatment of certain symptomatic uterine fibroids. It repurchased 0.7 million shares for $58 million and plans to buy back $250 million of its common stock via an accelerated share repurchase (ASR) agreement, set to be effective in the fiscal 2025 first quarter.

HOLX Share Price Performance

Year to date, Hologic shares have risen 11% compared with the industry's 6.3% growth and the broader Zacks medical sector’s 2.1% gain. In the same time frame, the company also outperformed peers QIAGEN QGEN and Becton, Dickinson, and Company BDX.

Year-to-Date (YTD) Price Comparison

HOLX Trades Cheaper

The company’s forward 12-month P/E of 18.3X is lower than both the industry average of 32.6X and its five-year median of 33.0X.

Price-to-Earnings Forward Twelve Months (F12M)

What’s Next for Investors?

Hologic is expected to keep capitalizing on its groundbreaking product lines, such as the Panther, ThinPrep liquid-based Pap test, 3D mammography, NovaSure and MyoSure — all of which have enhanced the existing standard of care. Building on this foundation, innovative products such as the Panther Fusion, Breast Cancer Index, AI in mammography, Fluent and Acessa are paving the way for the company to achieve long-term growth.

In the fiscal fourth quarter, Hologic launched the Genius Digital Cytology system in the United States, and the feedback from the early adopters has been largely positive. The platform represents a major improvement to the current Pap test workflows. Endomagnetics’ cutting-edge products, such as the Magtrace lymphatic tracer, have bolstered the Breast Health franchise and are poised to drive significant growth in fiscal 2025. HOLX is also gearing up for the upcoming next-generation gantry launch, featuring improved workflow, patient experience and image quality.

With a consistently strong financial position, Hologic has the flexibility to pursue opportunities that fit its capital allocation strategy and add new growth drivers. Both Endomagnetics and Gynesonics are revenue-accretive deals that align well with the company’s global portfolio. Internationally, Hologic foresees a sizeable opportunity to increase its share across all categories where it offers testing. Myosure is benefiting from its presence in vastly underpenetrated markets with high demand for minimally invasive options for the treatment of uterine polyps and fibroids. Although international growth initially dilutes the overall margins, the growing presence eventually opens new opportunities to improve operating leverage.

Concerns Weighing on Hologic

In the fiscal fourth quarter, Skeletal Health revenues plunged nearly 55% year over year from a temporary stop ship in the Horizon DXA shipments due to a non-conformance issue. While shipments are expected to resume in the fiscal 2025 first quarter, Hologic has factored the ongoing impact of the disruption in its full-year and first-quarter guidance. Added to this, the residual impact of the recent hurricanes, including the saline IV fluid shortage, is expected to be a headwind to Hologic’s more elective breast and surgical procedures.

Last month, the company issued a voluntary recall of its BioZorb 3D Bioabsorbable Marker on reports of serious adverse events occurring in patients who had the devices implanted in breast tissue. Subsequently, the FDA issued a safety communication alerting consumers, healthcare providers and healthcare facilities not to use the BioZorb Markers and return all unused devices to Hologic. The product line was initially issued a Class I recall from the regulatory body in May this year, which was more of a corrective measure rather than the product removal.

HOLX Estimate Movement

The company is witnessing a downward revision trend for earnings. Over the past 30 days, estimates for fiscal 2025 have dropped by 4 cents, and fiscal 2026 estimates by 5 cents.

How to Play HOLX?

Hologic’s diverse and durable strengths drove its fiscal fourth-quarter performance. The company continues to capitalize on its strong balance sheet and robust cash flows to pursue growth opportunities and deploy cash toward both M&A and share repurchases at the same time. Given the stock’s discounted price, staying invested may be prudent for the current shareholders. Meanwhile, the earnings miss in the quarter was discouraging. Those eyeing the stock could wait for a favorable entry point until the company addresses its near-term challenges.

Hologic carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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