On August 19, 2026, Becton Dickinson & Co BDX shares rose 3.8%, bringing the current price to $187.60. This price is within the 52-week range of $127.62 to $187.96, reflecting significant movement over the past year.
- GF Valueâ„¢ verdict: Current price is $187.60, which is 1.5% undervalued compared to the GF Valueâ„¢ estimate of $190.44.
- GF Scoreâ„¢: 77/100, indicating an above-average assessment of the stock's overall quality and potential.
- Most notable signal: Over the past 12 months, insiders sold $2.9 million worth of shares, with no buying activity reported.
Is BDX Overvalued or Undervalued?
Becton Dickinson's current share price of $187.60 is slightly below the GF Valueâ„¢ estimate of $190.44, indicating that the stock is 1.5% undervalued. This valuation suggests a potential opportunity for investors, as the stock may provide a margin of safety for new investments. The GF Valueâ„¢ is derived from a proprietary analysis that considers historical trading multiples, past business growth, and future performance estimates, giving a comprehensive view of the intrinsic value of the stock.
With the GF Valuation label indicating that BDX is fairly valued, it is essential for investors to weigh the growth potential against the company's current market performance and its dividend sustainability. The slight undervaluation could present an attractive entry point, but investors should also consider the overall market conditions and company-specific risks before making any decisions.
How Does BDX's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 56.5x | 34.0x |
| Forward P/E | 14.2x | N/A |
Currently, BDX's P/E (TTM) of 56.5x is significantly higher than its 5-year median P/E of 34.0x, marking a 66% increase. This elevated valuation suggests that the stock is trading well above its historical levels, which may not align with the GF Valueâ„¢ assessment. Investors should consider this disparity when evaluating the stock's future growth prospects and potential risks.
What Does BDX's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures a company's financial health and growth potential using various factors, including financial strength, profitability, growth, valuation, and momentum. BDX's GF Scoreâ„¢ of 77/100 reflects a solid overall quality, with notable strengths in profitability and valuation.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 77 |
| Financial Strength | 5/10 |
| Profitability | 8/10 |
| Growth | 4/10 |
| Valuation | 9/10 |
| Momentum | 6/10 |
BDX exhibits strong profitability with a score of 8/10 and a favorable valuation rank of 9/10, suggesting that the company is performing well in generating profits relative to its market price. However, the financial strength score of 5/10 and growth rank of 4/10 indicate potential areas of concern, particularly in terms of financial stability and growth prospects. Overall, the scores suggest a company that is well-positioned in terms of profitability and valuation, but with room for improvement in financial strength and growth.
What Are Gurus and Insiders Doing with BDX?
There are currently 16 gurus holding Becton Dickinson stock, with 12 adding to their positions and 6 trimming their holdings in recent quarters. This activity indicates a generally positive sentiment among institutional investors, as the majority have chosen to increase their stakes. This pattern of guru ownership is a valuable signal that provides insight into the stock's perceived value and potential.
On the insider front, BDX has seen $2.9 million in sales over the past year, with no buying activity reported. This lack of insider buying, coupled with the selling, may raise some concerns regarding the confidence of insiders in the company's future performance. Investors often view insider buying as a positive signal, so the absence of such activity could be a red flag despite the positive guru sentiment.
What This Means for Investors
Given the GF Valueâ„¢ assessment indicating that BDX is fairly valued and slightly undervalued at 1.5%, there appears to be a modest opportunity for investors. However, the elevated P/E ratio compared to historical levels and the insider selling trend may raise caution. Investors should weigh these factors carefully when considering their positions in Becton Dickinson.
For further insights and detailed analysis, you can visit the Becton Dickinson & Co BDX stock page and explore the GF Valueâ„¢ page for more valuation perspectives.
Frequently Asked Questions
What is BDX's GF Scoreâ„¢?
BDX's GF Scoreâ„¢ is 77/100, reflecting an above-average assessment of the stock's quality and potential based on various financial metrics.
Is BDX overvalued or undervalued?
BDX is currently considered 1.5% undervalued according to the GF Valueâ„¢ estimate of $190.44 compared to the current price of $187.60.
What is BDX's P/E ratio?
BDX's P/E (TTM) is 56.5x, which is significantly above its 5-year median of 34.0x, indicating that the stock is trading at a higher valuation than its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
