Here's Hinde Group's Investment Thesis for Becton, Dickinson and Company (BDX)

Hinde Group, an investment management company, has released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 14.37% (gross) and 13.93% (net) compared to 8.12% for the S&P 500 Total Return. The YTD return was 36.44% (gross) and 34.91% (Net) compared to 14.83% for the Index. The generative AI investment boom is a key reason the economy remains stable, and the stock market is optimistic despite ongoing political and economic challenges. You can check the fund’s top 5 holdings for its best picks for 2025.

In its third-quarter 2025 investor letter, Hinde Group 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 1.07%, and its shares lost 13.86% of their value over the last 52 weeks. On November 14, 2025, Becton, Dickinson and Company (NYSE:BDX) stock closed at $193.04 per share, with a market capitalization of $55.33 billion.

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

"We initiated a long position in Becton, Dickinson and Company (NYSE:BDX) during the quarter. BDX is a special situation investment. It is our first new position since 2022.

Founded in 1897 as a partnership to sell thermometers and syringes, Becton Dickinson (“BD”) has grown through product innovation, geographic expansion and acquisitions into a global, diversified medical technology company with annual revenue of more than $21 billion. Examples of the company’s products include peripheral intravenous catheters, infusion pumps and dedicated disposables; prefillable syringes, hemodynamic monitoring systems, molecular testing systems for infectious diseases, flow cytometry instruments, biological grafts, peripheral vascular stents and urine catheters. BD’s products are used by hospitals, doctors, life science researchers, clinical laboratories, the pharmaceutical industry and individuals. Ninety percent of hospital patients encounter at least one of the more than 45 billion medical products BD manufactures each year. Just over half of Becton Dickinson’s revenue comes from the U.S. and a little less than a quarter comes from Europe.

There is a lot to like about Becton Dickinson. In many of its product lines, BD has leading — if not monopoly like — market shares that have been stable for decades. Those high market shares allow BD to benefit from economies of scale in manufacturing, logistics, research & development and sales. BD’s market power is plainly evident in the levels of its gross margin (54.7%), operating margin (25.0%) and return on tangible invested capital (40%+). BD shines even brighter in terms of the predictability of its performance. Most of its revenue comes from selling low-priced yet essential consumable medical supplies and devices that enjoy stable demand, even during periods of economic weakness. Moreover, its revenue is highly diversified by product, product type, purchaser, end user and geography. BD sailed through the Global Financial Crisis, growing its reported revenue and operating income each year from 2007 to 2010…” (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. 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 fourth quarter of 2025, Becton, Dickinson and Company’s (NYSE:BDX) revenue grew 7% to $5.9 billion or 3.9% 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 FMI's views on the company. 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.