What Makes Becton Dickinson & Co. (BDX) a Good Investment?

Fiduciary Management Inc. (FMI), an independent money management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Stock markets rallied in the third quarter, with the Russell 2000, S&P 500, MSCI EAFE (Local/USD), and MSCI World Indices gaining 12.39%, 8.12%, 5.38%/4.77%, and 7.27% respectively. The performance was driven by a September rate cut by the Federal Reserve, strong enthusiasm for artificial intelligence (AI) and mega-cap technology, coupled with a surge of speculative buying activity. FMI’s portfolios differ from benchmarks, focusing on idiosyncratic dislocations. The firm focuses on business quality, balance sheet strength, and valuation while proceeding cautiously. Downside protection has been core to FMI for 45 years. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, FMI highlighted stocks such as Becton, Dickinson and Company (NYSE:BDX). Becton, Dickinson and Company (NYSE:BDX) is a healthcare 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 1.70%, and its shares lost 21.33% of their value over the last 52 weeks. On October 21, 2025, Becton, Dickinson and Company (NYSE:BDX) stock closed at $189.03 per share, with a market capitalization of $54.201 billion.

FMI stated the following regarding Becton, Dickinson and Company (NYSE:BDX) in its third quarter 2025 investor letter:

"Becton, Dickinson and Company (NYSE:BDX) is a medical supply and device company, selling low-cost medical essentials. Products include vascular access devices, pre-fillable syringes, and catheters, to name a few. Becton is the leader in most of its product lines and often competes in oligopoly market structures. Their management team has been executing on a strategy to grow and simplify the business. This has been successful but is obscured by noise in the financials caused by the pandemic, portfolio actions, and other temporary factors, providing us with an opportunity to buy a quality business at an attractive price. We believe execution on the company’s growth strategy and pending business separation will unlock value, with management targeting over 5% annual organic revenue growth and continued margin expansion in the coming years. Manufacturing scale is a key competitive advantage, with the company manufacturing billions of devices annually. Driven by healthcare utilization, the business is durable. Post their separation of biosciences and diagnostics solutions business in 2026, ~90% of revenue is recurring in nature (consumables). The valuation is attractive given the company’s defensive attributes and growth potential."

Becton, Dickinson and Company (NYSE:BDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 58 hedge fund portfolios held Becton, Dickinson and Company (NYSE:BDX) at the end of the second quarter, up from 54 in the previous quarter. In the fiscal third quarter of 2025, Becton, Dickinson and Company’s (NYSE:BDX) revenue grew 8.5% to $5.5 billion or 3% organic. While we acknowledge the potential of Becton, Dickinson and Company (NYSE: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 best dividend stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.