Here's Why Becton, Dickinson and Company (BDX) Traded Lower in Q2

Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The market rallied in the quarter, as the recession fears waned, and market sentiment shifted toward increased risk-taking. The fund lost 0.22% in the quarter compared to the 5.35% gain for the Russell Midcap® Value Index. Stock selection led to most of the underperformance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Heartland Mid Cap Value Fund highlighted stocks such as Becton, Becton, Dickinson and Company (NYSE:BDX). Becton, Dickinson and Company (NYSE:BDX) is a medical device company that develops and manufactures medical supplies, devices, laboratory equipment, and diagnostic products. The one-month return of Becton, Dickinson and Company (NYSE:BDX) was 2.25%, and its shares lost 22.16% of their value over the last 52 weeks. On July 11, 2025, Becton, Dickinson and Company (NYSE:BDX) stock closed at $175.97 per share with a market capitalization of $50.434 billion.

Heartland Mid Cap Value Fund stated the following regarding Becton, Dickinson and Company (NYSE:BDX) in its second quarter 2025 investor letter:

"Health Care.  Our Strategy’s worst performer was Becton, Dickinson and Company (NYSE:BDX), the world’s largest provider of healthcare consumable products such as needles, syringes and medication management systems.

Since the end of April, BDX shares have fallen nearly 20% after the company lowered its 2025 guidance to reflect the impact of the National Institute of Health funding cuts and an expected $0.25 EPS hit from tariffs. Even if growth fails to accelerate from the low single-digit rate implied for this year, we consider the multiple compression overblown for a business that has little or no risk of facing an earnings cliff.

We think investors are underestimating the durability of BDX’s mission-critical position in healthcare settings and its ability to adapt. The company has a strong track record of navigating fluid circumstances, being among the first in its industry to surpass its pre-COVID-19 margins following the global pandemic.  We believe BDX can reaccelerate organic growth and drive further margin expansion, despite being priced for neither to occur…” (Click here to read the full text)

Becton, Dickinson and Company (NYSE:BDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Becton, Dickinson and Company (NYSE:BDX) at the end of the first quarter, which was 56 in the previous quarter. While we acknowledge the potential of BDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Becton, Dickinson and Company (NYSE:BDX) and shared the list of most oversold stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.