Becton, Dickinson and Co. (NYSE:BDX) – Technical Analysis
Highlighting: Becton, Dickinson and Co. (NYSE:BDX)
Of the 1645 stocks analyzed on Monday, 1426 advanced, 202 declined and the remaining 17 were unchanged on the session. Gains across the stocks averaged 1.63% on volumes 12% lower than the day prior. Gains across the capitalizations averaged 1.41%, 1.83% and 2.11% for large-caps, mid-caps, and small-caps, respectively. We are now at almost 75% of stocks listed as overbought according to stochastics. A correction may be imminent.
Analysis has revealed that with a buy date of July 21 and a sell date of February 25, investors have benefited from a total return of 540.6% over the last 10 years.This scenario has shown positive results in 9 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of October 28 and a sell date of February 25, producing a total return over the same 10-year range of 346.33% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 235.93%.
Comments:
We have just entered the period customarily characterized by strength for shares of Becton, Dickinson and Co. (NYSE:BDX).The seasonal average gain for the stock is 17% between now and February, a scenario that has proven positive in 9 of the past 10 years.The stock remains within a downward channel that has pressured the stock lower by around 14% from the April highs.The stock is now cheap and momentum indicators are pointing to a possible entry point.The equity currently trades with a P/E of around 13, well below the five year average of 20.This implies that the price will have to appreciate to keep pace with the rising earnings figures that continually add value to this stock.Shares of this company hold an analyst "outperform" rating and institutions have been witnessed accumulating shares on net. Before investing, look for a breakout in the price of this stock above the downward channel that has limited any gains over the intermediate term.The company reports earnings on July 29th and out of the money calls prior may be the ideal way to play the upside potential of this event.
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Disclosure: Mr. Vialoux does not own securities mentioned in this report.
Disclaimer: Comments and opinions offered in this report at EquityClock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities.
Data offered in this report is believed to be accurate, but is not guaranteed.
Click Here to learn more about the proprietary, seasonal rotation investment strategy developed by research analysts Don Vialoux, Brooke Thackray, and Jon Vialoux.
