Becton, Dickinson and Company (BDX Quick QuoteBDX - Free Report) , popularly known as BD, is well poised for growth in the coming quarters, backed by its slew of product launches over the past few months. A robust first-quarter fiscal 2022 performance, along with a few strategic deals, is expected to contribute further. Forex woes and significant consolidation persist.

Over the past year, this Zacks Rank #3 (Hold) stock has gained 8.4% compared with 8% growth of the industry and 14.3% rise of the S&P 500.

The renowned medical technology company has a market capitalization of $74.58 billion. It projects 4.7% growth for the next five years and expects to maintain its strong performance. BD has delivered an earnings surprise of 12.5% for the past four quarters, on average.

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Let’s delve deeper.

Plethora of Launches: BD has been impressive with its launch of several products in recent times. During its first-quarter fiscal 2022 earnings call, the company had confirmed that its Pyxis ES version 1.7 software was live through limited commercial release at four sites in anticipation of a full commercial launch.

In December 2021, BD announced that it had expanded the BD COR System to include a new MX instrument for high-throughput molecular testing for infectious diseases.

Strategic Deals: We are upbeat about BD’s slew of strategic deals over the past few months. The company has collaborated with ReturnSafe (the all-in-one software solution for COVID-19 employee health, safety and compliance) in February to integrate the BD Veritor At-Home COVID-19 Test directly within the ReturnSafe testing management platform. The same month, BD completed the acquisition of Cytognos, a Salamanca, Spain-based privately held company.

In December 2021, BD completed the acquisitions of Scanwell Health Inc., Tissuemed, Ltd. and Venclose, Inc.

Strong Q1 Results: BD’s solid first-quarter fiscal 2022 results buoy our optimism. Improvement in base revenues and robust performances by the majority of its segments are impressive. A raised financial outlook for the full fiscal year is also promising.

Downsides

Significant Consolidation: The medical technology industry has been experiencing a significant amount of consolidation, resulting in companies with greater scale and market presence than BD. As a result, competition among medical device suppliers to provide goods and services has increased. Group purchasing organizations and integrated health delivery networks have also served to concentrate purchasing decisions for some customers, leading to downward pricing pressure for medical device suppliers. Further consolidation in the industry could intensify competition among medical device suppliers and exert additional pressure on the demand for and prices of BD’s products.

Foreign Exchange: BD generates a substantial amount of its revenues from international operations and also anticipates that a significant portion of its sales will continue to come from outside the United States in future. The revenues BD reports with respect to its operations outside the United States may be adversely affected by fluctuations in foreign currency exchange rates. BD cannot predict with any certainty the changes in foreign currency exchange rates or the degree to which it can mitigate such risks.

Estimate Trend

BD is witnessing a positive estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 3.9% north to $12.90.

The Zacks Consensus Estimate for the company’s second-quarter fiscal 2022 revenues is pegged at $4.86 billion, suggesting a 1% fall from the year-ago quarter’s reported number.

Key Picks

A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN Quick QuoteAMN - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX Quick QuoteMDRX - Free Report) and Henry Schein, Inc. (HSIC Quick QuoteHSIC - Free Report) .

AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has gained 41.5% against the industry’s 53.2% fall over the past year.

Allscripts, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 16.3%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 64.8%.

Allscripts has gained 42.9% against the industry’s 48.3% fall over the past year.

Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.

Henry Schein has gained 31.4% compared with the industry’s 8% rise over the past year.