Trump announces trade deal with EU following months of negotiations
On Friday, Piper Sandler analyst Jason Bednar spotlighted a selection of Medical (TASE:BLWV) Technology (medtech) stocks that are currently considered value investments, emphasizing SOLV and ALGN as the top picks in this category. These companies, with market capitalizations over $1 billion, are perceived to have significant potential for growth and positive revisions in analysts’ estimates. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of these medtech companies, including detailed Fair Value assessments and financial health scores.
Bednar pointed out that each stock on the list, which includes BDX, SOLV, ALGN, HSIC, XRAY, and NVST, carries its own "baggage" that has resulted in their valuation at levels below historical norms. For BDX specifically, InvestingPro data shows the stock trading near its 52-week low, with a P/E ratio of 33.5x and a steady dividend yield of 2.39%. The company has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability despite current market challenges. However, SOLV and ALGN were particularly noted for their potential to achieve both an expansion in their valuation multiples and positive estimate revisions, setting them apart from their peers.
The analyst suggested that while other stocks like BDX, XRAY, and HSIC have potential for better valuation multiples, and NVST shows promise for upward revisions in Street numbers, SOLV and ALGN are uniquely positioned to excel in both aspects. Bednar has previously made the case for these two stocks, arguing that they are likely to see an increase in their earnings per share (EPS) and are more shielded from potential tariff impacts compared to other mid- to large-cap value stocks in the medtech sector.
The endorsement of SOLV and ALGN by Piper Sandler comes as investors continue to search for value stocks within the medtech industry, which are trading below their usual price levels. This recommendation provides a focused view for bargain hunters in the investment community looking to capitalize on stocks with the potential for both valuation expansion and positive momentum in analyst estimates.
In other recent news, Becton Dickinson (NYSE:BDX) reported its financial results for the second fiscal quarter, revealing revenues of $5.27 billion, a 0.9% organic increase but slightly below the consensus estimate of $5.35 billion. The company’s earnings per share (EPS) for the quarter was $3.35, surpassing the consensus estimate of $3.28. Becton Dickinson has also updated its guidance for fiscal year 2025, lowering its organic sales growth forecast to 3-3.5% and adjusting its EPS guidance to a range of $14.06 to $14.34. In response to these developments, several analysts have revised their outlook on the company. Citi downgraded Becton Dickinson’s stock rating from Buy to Neutral, reducing the price target to $185. Jefferies maintained a Buy rating but lowered the price target to $255, citing the challenging quarter and uncertainties related to tariffs. Raymond (NSE:RYMD) James and Piper Sandler also downgraded their ratings to Market Perform and Neutral, respectively, highlighting concerns over growth trajectory and execution capabilities. Goldman Sachs followed suit, downgrading the stock to Neutral and setting a new price target of $192, reflecting a recalibration of growth estimates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.