Portfolio Manager Stephen Yacktman of Yacktman Asset Management is pointing investors toward C.R. Bard, Inc. (BCR), a diversified medical device company with a consistent business that is set to grow faster than its competitors.
“The company’s medical device products are largely disposable, with most priced below $500. Unlike other medical device companies where products retail for tens of thousands of dollars, C.R. Bard is more like the consumer product company of medical devices. It’s a very consistent business,” Yacktman said.
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Yacktman sees unrecognized value in C.R. Bard as a result from a lawsuit that was settled in Bard’s favor. The company has been reinvesting the proceeds, giving it an edge against others in the industry.
“The lawsuit was settled successfully for C.R. Bard, and management has been reinvesting those proceeds into share repurchases and growth projects. These investments should allow the company to grow faster than other medical device businesses which have not invested as much in R&D and acquisitions. And so much of the industry is facing headwinds from the medical device tax, C.R. Bard has invested strongly in the face of these industry challenges,” Yacktman said.
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