Becton Dickinson

2014 change: 27%

Market cap: $27.8 billion

Major holders at Sept. 30: State Street (6.44%), Vanguard Group (5.71%), BlackRock (4.24%), T. Rowe Price (2.11%), Franklin Templeton (2.09%), Wells Fargo (1.62%) and Jensen Investment (1.58%).

Why is it up? Investors liked, really liked, Becton Dickinson's ($BDX) decision to buy CareFusion ($CFN). In October, Becton Dickinson said it would buy CareFusion for $12.2 billion, thereby saving costs and broadening offerings to hospitals. The idea is to offer integrated medication management solutions and smart devices that span from drug preparation and the pharmacy to patient administration. Becton Dickinson had $8.5 billion in revenues for its fiscal 2014, which ended in Sept. 30, with a growth rate of 4.9% over the prior year. The company expects a growth rate of 4.5% to 5% in 2015. At the start of fiscal 2015, Becton Dickinson reorganized into a two-segment structure comprised of a Medical business, which includes the Medical Surgical Systems, Pharmaceutical Systems and Diabetes Care units, and a Life Sciences business that includes the Preanalytical Systems, Diagnostic Systems and Bioscience units.

What comes next? Piper Jaffray certainly thinks big things are ahead for Becton Dickinson in 2015. In mid-December, it raised its price target to $160 from $141 based on the upside potential of the CareFusion acquisition. That was when BD was trading at about $135; it's already up to $145 per share. Investors were motivated in part by enthusiasm for the Jan. 7 FDA approval of the BD Intelliport Medication Management System, which is the first system of its kind to manage manual IV bolus injections. It's designed to offer real-time drug identification, dose management and allergy detection at the injection site as well as to send captured information directly into a patient medical record following administration.

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For more:
Becton Dickinson ordered to notify customers about false-advertising claims for safety syringes
Becton plans on $9.1B bridge loan to finance deal with CareFusion
BD to buy CareFusion for $12.2B to become more hospital-focused
BD's Q1 income suffered from higher operating costs, but revenue grew

-- Stacy Lawrence (email | Twitter)

Becton Dickinson