C.R. Bard (BCR): A Health Care Leader

C.R. Bard (BCR) – This diversified maker of therapeutic and diagnostic medical devices has exposure to the vascular, urology, oncology, and specialty surgical markets.

What I Like

With BCR’s share price currently at $74.33 its shows the company is on an uptrend when valued against the 50-Day Moving Average, which is $73.36. With a 52-Week High of $101.61 (Sep 08) and a 52-Week Low $68.94 (Apr 09) the stock has seen the share of volatility that the markets have experienced.  I like C.R. Bard due to the huge growth opportunities in the Health Care industry, which will be helped out by President Obama’s National Health Care plan. Forecasts show that C.R. Bard is making roughly $2.6 billion in 2009, which will be a 4% increase. With the expansion overseas and the expanded demand for health care options in America I project it to increase even more in 2010, roughly around 5-10%. C.R. Bard should be a leader in its industry by out earning its peers as the company continues to drive growth with the release of new breaking products. The company hopes to generate higher sales through selective acquisitions. Although management will occasionally look for large and established companies to acquire, in general, BCR expects to focus on small- to medium-sized deals. Volume is above 100,000, which is the threshold in which I set. They have outstanding numbers with a 23.16% return on equity and 18.30% return on assets. Another plus is the company is not in debt and has half a billion in cash on hand top help expand their worldwide brand.

What I Don’t Like

C.R. Bard is a very safe pick and only risk would come at the inability to commercialize its products and bad outcomes from reimbursements.

Overview

Overall C.R. Bard is a strong growing brand in a growing industry. It is one of the top Health Care products providers and is a strong buy. I value C.R. Bard at $90 per share come 12-months from now.