Becton Dickinson (BDX) is an 18.9 bn dollar company in the medical equipment and supplies industry. It manufactures and sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products. Its customers include healthcare institutions, life science researchers, clinical laboratories, industry and the general public. Last year the company had 7.4 bn in sales and it has grown sales every year for the last decade. BDX has a profit margin of 16% and an ROE of 27%. Its debt to equity ratio is 0.49.
BDX has been in a steady uptrend since December 2008. Since its recent high on May 19, the stock has pulled back to find support at its 50 day MA and its 38% fib level. Its 10 period MFI is turning upward.
Here’s the play (calculations based on June 8 close):
- Buy BDX at market.
- Stop loss is a daily close below 83.04 for a 2.9% loss. Sell all at market the next morning.
- Target one is the intraday price of 87.73 for a 2.6% gain. Sell half and move stop to breakeven.
- Target two is the intraday price of 89.78 for a 5.0% gain. Sell rest.
