Is BDX a good stock to buy? We came across a bullish thesis on Becton, Dickinson and Company on The Mispricing Desk’s Substack. In this article, we will summarize the bulls’ thesis on BDX. Becton, Dickinson and Company’s share was trading at $149.99 as of June 8th. BDX’s trailing and forward P/E were 26.38 and 11.21 respectively according to Yahoo Finance.
Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide.
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BDX is presented as a post-transformation medtech platform still misread through litigation, separation noise, and remediation charges, despite evidence of a cleaner earnings base and improving capital return profile. In Q2 fiscal 2026, the company reported continuing-operations revenue of $4.714 billion and adjusted diluted EPS of $2.90, while raising fiscal 2026 adjusted EPS guidance to $12.52–$12.72, signaling strengthening execution across core segments.
The business spans medical technology franchises in diagnostics, life sciences adjacency, and high-margin recurring consumables, with durable exposure to global hospitals and healthcare systems. Following the Waters transaction generating ~$4.0 billion in net cash and a 39.2% stake, management prioritized capital return via a $2.0 billion ASR and ongoing buyback authorization equal to ~4.2% of shares outstanding. The company continues to simplify its reporting base, focusing investor attention on continuing operations rather than separation, restructuring, and remediation items.
Despite this, the market still prices BD at roughly 11.4x forward adjusted EPS, which appears disconnected from mid-single-digit growth, recurring revenues, and post-spin clarity. If execution continues with raised guidance, share count reduction and margin recovery could drive rerating toward normalized medtech multiples over coming quarters, supported by improved transparency and lower earnings volatility.
The result is a mispricing where downside is anchored by durable healthcare cash flows, while upside is driven by capital return and multiple expansion. With improving visibility on earnings quality, continued buybacks, and a simpler post-spin structure, the business increasingly resembles a steady compounding medtech platform rather than a transition story now.
Previously, we covered a bullish thesis on West Pharmaceutical Services, Inc. (WST) by Business Model Mastery’s Substack in May 2025, which highlighted its regulatory moat, deeply embedded drug-delivery systems, and high switching costs in injectable therapies. WST’s stock price has appreciated by approximately 55.52% since our coverage. Mispricing Desk’s Substack shares a similar view, focusing on post-spin simplification in BDX.
Becton, Dickinson and Company is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held BDX at the end of the first quarter which was 45 in the previous quarter. While we acknowledge the risk and potential of BDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BDX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
