Becton, Dickinson and Company (BDX)

BDX stock forecast: buy or sell

BDX stock outlook

  • Becton Dickinson and stock rose 2.33% to close at $258.61 on the stock market today, after 7 consecutive sessions in positive.
  • In late April price started dropping and printed 2 consecutive lower tops. shares price lost a -4.59% since the downtrend started.
  • The price is currently above the upper Bollinger band, which is usually an indicator of a near-term correction
  • On Monday broke out above its latest top at $250.32
  • Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide.
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Disclaimer:
The opinions written in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not have an understanding of the individual situations of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for learning reasons only

BDX stock chart overview

Should I buy Becton Dickinson and stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is BDX stock a buy?

In the current situation of Becton Dickinson and there is not any eligible buy setup. This doesn't mean we expect a selloff for BDX in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Becton Dickinson and stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Like when we have to buy shares, choosing when is appropiate time to sell is not a haphazard decision, and we must follow our own trading style. When selling, as well as buying, detailed strategies are very simple to use but are only applicable for selling stocks in your porfolio, not for shorting BDX stock

A guiding principle is that you should never hold an open trade that results in losses greater than those expected by the time of the buy. The timing to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Becton Dickinson and stock?

Currently, Becton Dickinson and stock doesn't match any of our preferred sell setups, so if you own Becton Dickinson and shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Becton Dickinson and stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 ratings were published for Becton Dickinson and

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Becton Dickinson and ratings

Brokerage firmRating
Jun 25th, 2020
Morgan Stanley
Jun 25th, 2020
Raymond James BuyBuy

Technical analysis

Downtrend breakout

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show trend direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Investors use supports and resistances as a way to identify price points on a chart that tend to work as glass ceiling, containing the price of an asset to move in certain direction. A support level is a level where the price tends to stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until meeting another support level. On the other hand, resistances are where the price tends to find opposition as it rises. In the same way, this means that the price is more liable to "rebound" at this level, and if it finally breaks this level, it will climb easily until it approaches the next resistance

The current resistance levels are:

  • R1: $259.19 (0.22% above)
  • R2: $260.05 (0.56% above)
  • R3: $262.21 (1.39% above)
  • The current support levels are:

  • S1: $256.86 (-0.68% below)
  • S2: $254.83 (-1.46% below)
  • S3: $253.12 (-2.12% below)
  • Bollinger bands

    The so-called Bollinger bands are a widespread studio that was created by John Bollinger. In essence, the Bollinger Bands are bands that run around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    When the price moves out of the band (above the upper line or below the lower line) it means that the stock is currently maintaining a very strong momentum and therefore can reverse the trend to the average. At this point, the price is above the upper band, and that should mean a short-term correction (at least) until it is under the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    The Relative Strength Indicator (RSI) has been between the the levels of 30 and 70 for many weeks, and therefore, without this indicator really helping us to make any decisions.

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    Earnings and financials

    1st-quarter shareholders call was hosted by BDX in early May after posting the financial report. BDX posted first-quarter earnings of $2.55 per share on revenue of $4.3 billion. The market estimate was $2.38 per share on revenue of $4.2 billion.

    This compares to earnings of $2.59 per share a year ago, so current EPS means a loss of -1.54%. Sales slightly moved on an annualized basis in the Q1, from $4.2B to $4.3B last quarter.

    BDX is posting Q2 financial report on early next August. Wall Street estimates earnings of %s a share of $2.10, compared to Q1 that made $2.55. If you hold or you are thinking of buying BDX stock, you must be on your toes as financial reporting day usually has a very high volatility, and price can gap up or down with unsually low liquidity and not honouring your buy/stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

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